Major FX pairs consolidate as Wall Street targets new record highs

Currency markets showed minimal movement during the European session, with major pairs trading in tight ranges as traders positioned cautiously ahead of Wall Street's opening. EUR/USD held steady near 1.0840, fluctuating within a narrow 15-pip range, while GBP/USD consolidated around 1.2680. USD/JPY remained anchored near 141.50, reflecting the broader lack of directional conviction in FX markets. The subdued price action comes as equity futures point to potential fresh record highs for US indices, drawing capital flows away from currency markets. With no significant economic data releases during the session, traders are focusing on month-end flows and upcoming US data later in the week. Technical indicators suggest major pairs are coiling within compression patterns, potentially setting up for larger directional moves once catalysts emerge. The calm conditions may persist until next week's key central bank meetings and economic releases provide clearer directional drivers.