The US dollar retraces gains as markets await non-farm payroll guidance on rate cuts

Following weak US manufacturing data released on Monday, the dollar continued to come under pressure, with earlier gains driven by safe-haven flows triggered by Venezuelan actions being reversed. The US December ISM Manufacturing PMI fell from 48.2 in November to 47.9, below market expectations of 48.3.
Investors are closely monitoring economic data this week to gauge the timing of the Federal Reserve's next rate cut, with the US non-farm payroll report due on Friday becoming the market focus. The US Dollar Index DXY declined 0.1% to 98.19, after briefly touching a nearly four-week high of 98.86.