USD Holds Firm as UK Jobs Data Disappoints; USD/JPY Erases Intervention Losses

The US dollar maintained its bullish posture during the European session on Monday, supported by a macro backdrop that continues to favor the greenback. UK employment data came in weaker than expected, weighing on sterling and reinforcing dollar strength across major pairs. USD/JPY continued to erase prior intervention-driven losses, with the pair's upside momentum sustained by widening US-Japan yield differentials and a macro environment skewed in favor of dollar bulls. Barclays highlighted the potential for a strong dollar rally this week, adding to the bullish sentiment. Meanwhile, the Euro area trade surplus narrowed in March as the energy deficit widened amid persistent Middle East tensions, keeping oil prices elevated and adding to risk-off undertones. Nasdaq's bullish momentum showed signs of stalling, with downside risks emerging that could further boost safe-haven dollar demand. Fund manager positioning remains overwhelmingly skewed, with just 4% expressing alternative views. Traders should monitor US data releases closely this week for confirmation of continued dollar strength, with resistance levels on EUR/USD and GBP/USD likely to be tested.