USD Steady as Fed Holds Rates; Major Pairs Await Summer Data

Following this week's central bank meetings, the US Dollar Index has stabilized near 104.50 as the Federal Reserve maintained its neutral stance. Markets are pricing in 47 basis points of Fed rate cuts by year-end, compared to 49 bps for the BoE and 70 bps for the RBA. The ECB and BoC show modest 25 bps cut expectations, while the BoJ remains the outlier with 14 bps of hikes anticipated. The SNB's surprise cut to 0% has raised deflation concerns, pressuring CHF pairs. Major currency pairs remain range-bound with EUR/USD holding near 1.0800 and GBP/USD testing 1.3400 resistance. Traders are positioning cautiously ahead of summer economic data releases that could shift central bank policies. Technical indicators suggest consolidation patterns across major pairs, with breakouts likely dependent on upcoming inflation and employment reports from key economies.