Weekly FX forecast: Major pairs poised for volatility on key events

Currency markets are bracing for potentially significant moves across major pairs as traders position ahead of a packed week of economic releases and central bank communications. EUR/USD faces critical tests with upcoming Eurozone inflation data and ECB officials' speeches that could influence rate expectations. GBP/USD volatility is expected to increase around UK economic indicators and ongoing Brexit-related uncertainties affecting sterling sentiment. USD/JPY remains sensitive to Bank of Japan policy signals and US Treasury yield movements, with the pair consolidating near recent highs. NZD/USD continues its bearish trajectory, pressured by domestic economic concerns and broad dollar strength. Technical setups across these pairs suggest breakout potential, with many trading near key support and resistance levels. Traders should prepare for increased volatility as markets digest incoming data that could shift monetary policy expectations and risk sentiment. Position sizing and risk management will be crucial given the potential for sharp moves in either direction.