The US dollar edged lower in early Asian session after finishing stronger on Friday, while the pound traded on shaky ground amid UK political uncertainty.
Retail sales data came out mixed in September, suggesting slowing consumer demand amid rising price pressures.
However, when the consumer confidence index came out on an encouraging note, the gloom of the US dollar went away.
This also followed a rise in the 10-year US bond yield which surged to a 14-year high of 4.08%, pushing stocks lower.
Meanwhile, volatile trading surrounded the pound as speculation erupted about a move to oust Liz Truss as UK prime minister.
This happened after Finance Minister Kwasi Kwarteng was sacked by Truss who are expected to cancel part of their economic package in an effort to defend the market.
In the meantime, Bank of England (BOE) Governor Andrew Bailey has signaled that a bigger rise in interest rates is likely in the future.
Focusing on investors now is Wednesday's UK inflation data which is expected to show a higher increase in September.
