USD fell against its major counterparts in the European session on Monday, as the EU-UK trade deal and  U.S. stimulus bolstered market sentiment. 

On Sunday, the U.S. President Trump signed a $900 billion stimulus and omnibus bill that funds the government through the end of the fiscal year next September, refusing from his last week's demands for larger, $2,000 aid checks. "I will sign the Omnibus and Covid package with a strong message that makes clear to Congress that wasteful items need to be removed. I will send back to Congress a redlined version, item by item, accompanied by the formal rescission request to Congress insisting that those funds be removed from the bill", Trump said in the statement. The market participants believe that the massive stimulus will help support the U.S. economy next year. The House is expected to vote today to increase stimulus checks to $2000, but it is not likely to receive the necessary support.

The UK and the EU reached a long-awaited deal on post-Brexit trade relations late last week. According to a spokesman for the German EU Presidency Sebastian Fischer, the Brexit deal got the green light earlier today as the EU ambassadors approved the provisional application of the EU-UK Trade and Cooperation Agreement as of January 1, 2021. The deadline for final adoption by use of written procedure by all 27 EU governments is 14:00 GMT on Tuesday, Fischer added.