USD steady as markets await European session after Friday's volatility

Major currency pairs showed limited movement during Monday's Asian session, with traders hesitant to extend Friday's price action ahead of the European open. EUR/USD held near 1.0845, consolidating after Friday's 0.2% gain, while GBP/USD remained stable around 1.3120. The dollar index (DXY) traded flat at 101.50, reflecting cautious market positioning. Asian equities showed mixed performance, with the Nikkei closing 0.3% higher while Shanghai Composite declined 0.2%. Market participants are awaiting fresh catalysts from European economic data releases, including German IFO Business Climate and Eurozone Consumer Confidence figures. Technical indicators suggest range-bound trading likely to continue, with EUR/USD facing resistance at 1.0870 and support at 1.0820. The lack of follow-through from Friday's moves indicates traders are reassessing positions ahead of this week's key economic releases, including US GDP revision and PCE inflation data.