The next seven days are packed full of key data with reports on retail sales and manufacturing setting the tone on Monday right through to the March jobs report on Friday.
The pound retreated in Asia with lawmakers due to vote on whether to extend the March 29 deadline for leaving.
The pound has risen about 1.5% against the dollar since late Friday, while it is up around 2% on the euro.
Traders remain vigilant on developments in US-China trade talks, with conflicting comments from both sides on the progress.
Worries have begun to wane following concerns last year of a higher fiscal deficit and possible sovereign rating downgrades.
Regional investors were in a broadly upbeat mood owing to optimism about a China-US trade deal.
Observers warned that failure to meet market expectations could lead to a sharp drop in global equities.
Investors also greeted Trump's decision to sign a spending bill that averts another government shutdown.
Tokyo led the slump, while Hong Kong returned from the three-day Lunar New Year break in the red.
Concern is mounting about the risk of a no-deal exit and that is showing up in derivative markets which are predicting more currency volatility in the coming days.
The ICE Dollar Index jumped more than 10% from its low in February 2018 to its high in November, and its average level last quarter was 3% higher than the previous year’s period.
The pound did not collapse as Brexit was a no-deal, while US-China high-level trade talks will start on Wednesday.
While the majority of Asian markets fell Tuesday they did pare their losses and some even edged into positive territory.
Asian markets will expect an extension in tariff increases, as more difficulties will arise from the US-China trade talks.
Investors still worry about the upcoming challenges as China's struggles to revive its economy and Trump facing a government shutdown.
Regional equities picked up after Bloomberg said Beijing had pledged to ramp up spending on US goods over the next five years.
Global markets are enjoying an overwhelmingly bullish end to the week.
Oil prices rose on the China-US tariffs report and after Opec said it had cut output.
The pound bounced back as traders bet there would not be a 'no-deal' exit.
Last week's rally resumed, fuelled by optimism that Beijing and Washington will eventually resolve their differences.
Earlier, Asian markets ended the week mostly on a higher note.
There is a wave of optimism as it was indicated that the head of the Federal Reserve will likely slow down its pace in interest rate hikes.
While the dollar stabilised against its major peers Thursday, it saw more losses against higher-yielding currencies.
China is ready to buy more US goods and services, while further talks at cabinet level are being lined up next week.