USD muted as markets await data after Senate funding bill advance

USD pairs remain largely unchanged in early Monday trading as markets enter a quiet period with no significant economic data releases scheduled. The dollar showed minimal reaction to weekend political developments after the US Senate voted 60-40 to advance a government funding bill through January 30, with eight Democrats joining Republicans to avoid a shutdown. Major pairs like EUR/USD and GBP/USD are consolidating near Friday's closing levels, with traders maintaining a cautiously optimistic stance. The positive risk sentiment following the funding resolution has provided mild support for risk-sensitive currencies against the greenback. Without fresh economic catalysts today, forex markets are likely to trade within tight ranges as participants await Tuesday's economic calendar. Technical indicators suggest USD index holding above 104.50 support, with resistance at 105.20. The lack of volatility presents limited trading opportunities, with focus shifting to upcoming inflation and employment data later this week.