Dollar Steady as Markets Await Direction; Crypto Pullback Weighs

The US Dollar Index held steady near 103.50 during the European session, reflecting a cautious market mood as traders await fresh catalysts. Major currency pairs showed limited movement, with EUR/USD consolidating around 1.0830 and GBP/USD hovering near 1.2750. The tepid trading environment follows last week's mixed economic data that failed to provide clear direction for monetary policy expectations. Cryptocurrency markets experienced notable retreats, with Bitcoin falling 3.5% below $65,000, potentially reducing risk appetite across financial markets. This crypto weakness has contributed to a slight bid for safe-haven currencies, including the dollar and Japanese yen. Technical analysis shows the Dollar Index trapped between support at 103.20 and resistance at 103.80. Traders are positioning ahead of this week's key economic releases, including US retail sales and industrial production data, which could break the current range-bound trading pattern.