'Don't be fooled by the pullback in the US Dollar ... almost all of the major currencies rebounded because of local factors and not a shift in appetite for US Dollars or change in economic fundamentals'.
In contrast to the latest news on Brexit, Italy's budget proposals remain a drag on the euro.
"King dollar has staged a return", said Valentin Marinov, head of G10 FX strategy at Credit Agricole. "The European currencies look most vulnerable". Latest futures data showed net short positions registered their biggest weekly rise in 1-1/2 months to $4.6 billion.
The Italian government failed to produce a revised deficit target requested by the European Commission, with Rome officials instead saying they would stick to a budget deficit that is 2.4% of gross domestic product and economic growth that is a 1.5% of GDP for its 2019 budget plan, according to Bloomberg News.
The WSJ Dollar Index was up 0.4% in early morning trading, hovering around levels last seen in June 2017.
Audio of Khashoggi's Murder May Implicate Saudi Crown Prince
The recording is viewed by the U.S. intelligence officials as some of the strongest evidence yet linking bin Salman to the murder. The 59-year-old Saudi dissident was last seen entering the consulate on October 2 to obtain documents for his upcoming marriage .
Finland says Russian Federation possibly behind Global Positioning System jamming
Since the maneuvers began at the end of October, Finnish authorities have noticed disruptions to the Global Positioning System network.
China expresses satisfaction over Rohingya repatriation deal
He also said, the list prepared for Myanmar contained the name of at least 22,000 Rohingya. Many refugees have said they fear for their lives if they should return to Myanmar.
The malaise in Europe has been good news for dollar bulls, with the Sino-US trade tensions and weak China data also feeding safe-haven flows to the greenback. "The dollar will be supported going into year end", said Bernd Berg, Global Macro and FX Strategist at Woodman Asset Management AG.
"Amid talk that this week could be the Cabinet's last chance to secure an agreement to present at a November EU summit, Ms May's proposals are tasked with healing an increasingly divided Conservative party while also keeping the party's DUP allies onside", said Mellor.
Prime Minister Theresa May's spokesman punctured earlier investor optimism over progress on a Brexit deal, denying a Financial Times report, citing European Union's Brexit negotiator Michel Barnier as saying the main elements of a deal were ready and could be presented to the United Kingdom cabinet as soon as Tuesday. The USD/JPY is now trading at 113.923 Yen, up 0.090%; the pair has ranged from 113.750 Yen to 114.214 Yen in today's session. The dollar has been preferred over the yen because of the diverging monetary policies of the Fed and the Bank of Japan, which is expected to keep retain its monetary policy ultra-loose for some time.
It shot up 0.9 per cent to 86.56 pence versus the euro, its strongest level since mid-April, with more than half the gain following the reports.