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The U.S. dollar surged following a stronger-than-expected nonfarm payrolls report, with 172K new jobs added in April, far exceeding the 85K forecast. Upward revisions to prior months added 93K jobs, reinforcing the labor market's resilience. The USDJPY climbed to 160.22, nearing the key 160.446 level, while EURUSD tested critical support at 1.1576-1.1587. GBPUSD hit weekly lows amid broader USD strength.
The USD's rally has significant implications for forex traders, particularly in USDJPY where technical levels like the 160.446 resistance and 200-hour moving average at 159.601 are critical. EURUSD's breakdown below 1.1576 could trigger further declines toward 1.1540. Traders must monitor Japanese intervention risks and Fed policy signals, as both could shift market dynamics.
For Gulf investors, the USD's dominance affects cross-currency trades and hedging strategies. The EURUSD's support test and USDJPY's volatility create opportunities for range-bound or breakout strategies. Key watchpoints include the 160.446 level for USDJPY and the 1.1576 floor for EURUSD. Central bank statements and upcoming economic data will shape near-term momentum.
