USD steady as markets await CPI; data expected to be non-event

The US dollar index consolidated near 106.15 as forex markets adopted a wait-and-see approach before today's CPI inflation report. Analysts expect the data to show core CPI at 3.3% year-over-year, unchanged from September, potentially making it a non-event for currency traders. EUR/USD trades sideways at 1.0535, while USD/CAD holds firm at 1.3950. The Federal Reserve has already telegraphed a gradual easing cycle, with markets fully pricing in 50 basis points of cuts by March 2025. Technical indicators suggest the dollar is in a neutral range, with DXY support at 105.80 and resistance at 106.50. The lack of major economic surprises recently has led to decreased volatility across major pairs. Traders should prepare for potential range-bound trading unless CPI delivers a significant surprise above 3.5% or below 3.1%.