Markets await CPI amid Fed cut expectations; volatility remains low

Global forex markets are experiencing unusually low volatility as traders await the US CPI release, with major pairs confined to narrow ranges. EUR/USD hovers near 1.0540, USD/JPY consolidates around 152.80, while the S&P 500 futures edge 0.2% higher. The data blackout period has left markets directionless, with Fed rate cuts for December already 70% priced in at 25 basis points. The DXY trades sideways at 106.10, reflecting the market's neutral stance. Implied volatility measures have dropped to three-month lows across major currency pairs, suggesting traders expect limited market movement even after the CPI release. Technical patterns show most pairs trading within established ranges, with EUR/USD between 1.0520-1.0580 and USD/JPY bounded by 152.00-153.50. The calm before potential storm conditions warrant caution, as any CPI surprise could trigger outsized moves.