The U.S. dollar traded lower against the most major currencies after the weaker-than-expected U.S. existing home sales figures. Sales of existing homes rose 1.2% to a seasonally adjusted annual rate of 4.88 million in February from 4.82 million in January. Analysts had expected an increase to 4.91 million units.

The euro rose against the U.S. dollar after comments by the European Central Bank (ECB) President Mario Draghi. He told the European Parliament in Brussels on Monday that the economic growth in the Eurozone "is gaining momentum" due to in particular falling oil prices, higher external demand, easy financing conditions and a weaker euro.

Draghi noted that the central bank monitors closely any potential risks to financial stability in the Eurozone, and added that "currently these risks are contained".

Eurozone's consumer confidence index rose to -3.7 in March from -6.7 in February. Analysts had expected the index to climb to -6.0.

Germany's Bundesbank released its monthly report on Monday. The central bank expects a strong growth of German economy in the first quarter of year. "There are also signs of a continued vigorous upward economic movement in the second quarter," Bundesbank added.

The British pound traded higher against the U.S. dollar. The CBI industrial order books balance dropped to zero in March from +10% in February.

Analysts expected the CBI industrial order books balance to decrease to +9%.

The decline was driven by a stronger pound and a weak economy in the Eurozone.

Volume of output for the next three months fell to +22 in March, down from +25 in February.

The New Zealand dollar traded higher against the U.S. dollar. In the overnight trading session, the kiwi rose against the greenback in the absence of any major economic reports from New Zealand.

The Australian dollar increased against the U.S. dollar. In the overnight trading session, the Aussie traded higher against the greenback in the absence of any major economic reports from Australia.

The Japanese yen traded higher against the U.S. dollar. In the overnight trading session, the yen traded higher against the greenback in the absence of any major economic reports from Japan.