USD softens ahead of European PMI releases, majors consolidate

The dollar index declined modestly in Monday's trading, with major currency pairs showing limited directional conviction as markets await fresh catalysts. EUR/USD holds near 1.0850 while GBP/USD trades around 1.3150, both gaining marginally against the greenback. Market participants are positioning cautiously ahead of today's European PMI data releases, which could provide direction for the euro and sterling. The preliminary September manufacturing and services PMI figures from Germany, France, and the broader Eurozone are expected to show continued economic challenges, potentially limiting euro upside. Technical indicators suggest major pairs remain range-bound, with EUR/USD facing resistance at 1.0880 and support at 1.0820. The overall forex market exhibits a tentative tone, reflecting uncertainty about global growth prospects and central bank policy trajectories. Traders should monitor the PMI releases closely as significant deviations from consensus could trigger breakouts from current ranges.