USD: Fed Quiet Period Begins Ahead of Key PMI Data Release

The US dollar enters a crucial week with the Federal Reserve in its quiet period before the July 30 FOMC meeting, limiting official guidance on monetary policy direction. Thursday's S&P Global flash manufacturing and services PMI data for both Europe and the US will be closely watched for economic momentum signals. US initial jobless claims improved to 221K last week, retreating from recent highs near 250K and reinforcing labor market resilience. The European Central Bank meeting is expected to maintain current rates, though officials may signal increased readiness for future easing amid persistent tariff concerns. Dollar positioning remains cautious as traders balance solid employment data against potential PMI disappointments. Technical levels on major USD pairs suggest consolidation ahead of the data releases, with EUR/USD hovering near 1.0850 resistance and USD/JPY testing 156.00 support.