FX markets digest Trump tariff court ruling amid cautious trading

European forex markets showed mixed reactions as traders continued processing a significant court ruling on Trump-era tariffs. The dollar index fluctuated between gains and losses, with major pairs trading in tight ranges as market participants assessed the implications for future US trade policy. EUR/USD held steady near 1.0850, while GBP/USD consolidated around 1.2650. The court decision, which appears to limit executive tariff powers, has reduced immediate trade war concerns but introduced uncertainty about future protectionist measures. Asian currencies showed modest strength, with USD/JPY dipping 0.2% to 156.80. Market volumes remained below average as traders awaited clearer signals on how the ruling might affect bilateral trade agreements and currency valuations. Technical indicators suggest continued range-bound trading until fresh catalysts emerge, with support and resistance levels well-established across major pairs.