USD caught between missing data and rising volatility on Fed uncertainty

The US dollar trades in a narrow range as missing economic data and increased market volatility cloud the Federal Reserve's policy outlook. Key economic indicators remain unavailable due to reporting delays, leaving traders without crucial inputs for assessing the Fed's next moves. EURUSD, USDJPY, and AUDUSD all show signs of consolidation as market participants await clearer signals. Dollar index futures reflect the uncertainty, trading sideways amid conflicting technical signals. The absence of reliable data has amplified market volatility, with implied volatility measures rising across major currency pairs. This environment creates challenging conditions for directional trades, prompting many traders to reduce positions until clarity emerges. The Fed's data-dependent stance means the missing economic reports could significantly impact monetary policy expectations once released. Short-term trading remains choppy, with support and resistance levels being tested frequently across major pairs.