USD maintains strength despite limited economic data releases

The US dollar continues its bullish momentum with the DXY holding above 106.20, gaining 0.3% despite a relatively quiet economic calendar. Market participants maintain dollar-long positions based on expectations of sustained Federal Reserve hawkishness and US economic resilience. EUR/USD declined 0.25% to 1.0805, while USD/JPY advanced 0.4% to 150.80, testing key resistance levels. USD/CAD rose 0.2% to 1.3650 amid softer oil prices. The dollar's strength persists even without fresh catalysts, suggesting strong underlying demand and safe-haven flows. Technical analysis shows the Dollar Index approaching resistance at 106.50, with support established at 105.80. Traders are positioning ahead of Wednesday's FOMC minutes and Friday's employment report, which could provide clearer direction. The absence of significant data has led to consolidation in some pairs, but the overall dollar-bullish trend remains intact as markets await confirmation of the Fed's policy trajectory.