Dollar steady, gold retreats as markets await ECB policy decision

The US dollar index maintained stability near 104.50 during European morning trading, while gold prices retreated 0.8% to $2,380 per ounce ahead of the ECB's monetary policy announcement. Major currency pairs showed limited movement, with EUR/USD consolidating around 1.0895 and GBP/USD holding near 1.2850. The dollar's resilience reflects ongoing support from relatively hawkish Federal Reserve expectations, despite recent mixed economic data. Gold's pullback from recent highs suggests profit-taking as traders reduce risk exposure before the ECB decision. Asian session data showed mixed results, with Japanese yen weakening slightly against the dollar to 152.30. Market participants remain cautious, with implied volatility measures elevated across major pairs. The ECB's rate decision and subsequent communication will likely determine near-term direction for EUR crosses, while broader dollar trends depend on upcoming US economic releases.