Brexit will take center stage again on Monday as Great Britain and Europe are on the brink of sealing a divorce deal, which is expected to shake up market sentiment. Theresa May is expected to travel to Brussels and break the deadlock surrounding Brexit talks. GBP/USD rose above 1.35 overnight.

The dollar was lifted higher on Monday, hitting a 2-1/2-week peak against the yen, boosted by the approval of a tax overhaul over the weekend by the U.S. Senate.

The Senate's green light on Saturday puts Republicans and President Donald Trump a big step closer to their goal of slashing taxes in what would be the largest change to U.S. tax laws since the 1980s.

Support for the greenback was drawn from rising Treasury yields, as the proposed tax cuts for corporations and the wealthy should stimulate the U.S. economy, and also yields higher, as the government becomes more dependent on debt due to reduced tax income.

Asian markets were mixed, as U.S. futures rose sharply, with the Dow Jones industrial average set to start more than 200 points higher on Monday.

USD/JPY led the surge among majors, up almost 0.7 percent to above 113, with USD/CHF close behind, up as well 0.7 percent to 0.9848. EUR/USD slipped to 1.1836 overnight while gold traded as low as 1,271.15$ per ounce.

The 10-year benchmark Treasury yield climbed about 4 basis points to 2.404 percent in response to the U.S. Senate's approval of the tax bills.