Major forex pairs trade sideways as markets await weekend catalysts

Major currency pairs are showing minimal movement in European morning trade, with EUR/USD hovering around 1.0950, GBP/USD at 1.2720, and USD/JPY near 149.50. Trading volumes are down 30% from weekly averages as participants adopt a cautious stance ahead of the weekend. The subdued price action reflects a lack of fresh fundamental drivers and position squaring ahead of next week's heavy economic calendar. Implied volatility indicators have dropped to monthly lows across G10 pairs, suggesting range-bound conditions likely to persist. Technical analysis shows most majors trading within their 5-day average true ranges, with neither bulls nor bears showing conviction. Traders are particularly focused on next week's US CPI data and ECB policy meeting, which could provide the catalyst for directional moves. Until then, tight ranges and choppy price action are expected to dominate.