USD pairs range-bound ahead of crucial Fed decision this week

Major USD pairs are trading in tight 15-pip ranges during early Monday trading, with EURUSD holding steady at 1.0845, GBPUSD at 1.3120, and USDJPY at 149.50. Market participants are exercising extreme caution ahead of this week's FOMC meeting, which is expected to provide crucial guidance on the Fed's monetary policy trajectory for Q4 2025. The subdued volatility reflects traders' reluctance to establish significant positions before the central bank announces its decision on Wednesday. European markets opened with minimal movement, as investors await Tuesday's Eurozone inflation data and Wednesday's UK employment figures. Technical indicators suggest consolidation patterns across major pairs, with EURUSD respecting the 1.0830-1.0860 range. The upcoming Fed decision could trigger substantial volatility, particularly if the central bank signals any shift in its current hawkish stance or adjusts its dot plot projections for 2026.