USD supported by tight monetary conditions across major pairs

The US Dollar maintains broad strength against major currencies as tight monetary conditions continue to provide fundamental support. EUR/USD remains pressured below 1.0550, while GBP/USD struggles near 1.2850, and EUR/GBP trades sideways around 0.8650. The Dollar Index holds above crucial support at 106.00, benefiting from the Federal Reserve's sustained hawkish stance relative to other central banks. Market participants note that despite recent speculation about policy pivots, actual monetary conditions remain restrictive, supporting dollar flows. Technical analysis reveals EUR/USD facing resistance at the 50-day moving average, while GBP/USD tests support at recent lows. The persistent interest rate differential continues to favor dollar positions, with traders positioning for continued greenback strength unless fundamental conditions shift significantly. Near-term catalysts remain limited, suggesting range-bound trading with a dollar-positive bias.