Light economic calendar keeps forex markets in consolidation mode

Monday's trading session features minimal high-impact economic releases, creating a subdued environment for major currency pairs. The European session offers only low-tier data including Italian business confidence and French unemployment claims, neither expected to influence ECB policy decisions. Similarly, the American session presents the Richmond Fed Manufacturing Index and Dallas Fed Services Index, typically non-market-moving indicators that rarely impact Fed expectations or currency valuations. This data vacuum suggests major pairs like EUR/USD and GBP/USD will likely trade within established ranges, with traders potentially reducing positions ahead of more significant releases later in the week. The absence of market catalysts often leads to technical trading dominating price action, with support and resistance levels gaining increased importance. Volatility is expected to remain compressed, offering limited opportunities for directional trades. Traders should prepare for potential range-bound conditions while monitoring any unexpected geopolitical developments that could disrupt the calm market environment.