Major Pairs Range-Bound as Iran-Israel Tensions Keep Markets on Edge

Major currency pairs are trading in tight ranges during European morning trade, with EUR/USD holding steady near 1.0800 and GBP/USD around 1.2700. The US Dollar Index remains unchanged at 106.20 as traders adopt a wait-and-see approach amid escalating Middle East tensions. Market participants are particularly cautious about potential US involvement in the Iran-Israel conflict, leading to subdued volatility across all major pairs. USD/JPY continues to hover near 157.50, while commodity currencies AUD/USD and USD/CAD show minimal movement at 0.6650 and 1.3750 respectively. Risk sentiment remains fragile, with safe-haven flows balanced between the dollar and traditional havens like the Swiss franc and Japanese yen. Technical indicators suggest consolidation patterns across the board, with traders awaiting clearer geopolitical developments before committing to directional positions.