USD Consolidates as Geopolitical Support Fades; EUR/NOK Eyes 11.70

The US dollar entered a consolidation phase as conflict-driven safe-haven flows diminished, leaving traders searching for fresh directional catalysts. EUR/USD stabilized around 1.0855 after failing to breach 1.0880 resistance, while GBP/USD held above 1.2700 support. EUR/GBP remained range-bound near 0.8550, reflecting similar fundamental backdrops for both European currencies. Notable movement emerged in EUR/NOK, which approached the 11.70 level as oil prices softened and Norwegian krone faced pressure from declining energy sector revenues. Without significant economic data releases, forex markets lacked conviction, with implied volatility measures dropping to monthly lows. Technical indicators suggest the dollar index needs to break below 104.20 support or above 104.80 resistance to establish a clear trend. Traders await next week's central bank speeches and economic data for potential market catalysts.