The US Dollar opened the week on a stronger note as investors adopted a cautious stance ahead of the upcoming US employment report, which is expected to provide fresh insights into the Federal Reserve's monetary policy outlook. Market participants continue to assess whether the central bank will have enough confidence to begin easing interest rates later this year.

EUR/USD traded lower as demand for the greenback increased, while GBP/USD also came under pressure following weaker-than-expected UK manufacturing data. The disappointing economic figures reinforced concerns about slowing growth across Europe, limiting upside potential for both currencies.

Meanwhile, gold prices retreated modestly as a stronger US Dollar and higher Treasury yields reduced demand for non-yielding assets. Despite the short-term correction, analysts believe the precious metal remains supported by ongoing geopolitical uncertainty and expectations of future monetary easing.

Investors are now turning their attention to the upcoming Non-Farm Payrolls (NFP) report, which is expected to drive significant volatility across the forex market. A stronger-than-expected labor market could further support the US Dollar, while weaker data may revive expectations for earlier Federal Reserve rate cuts.