EUR/USD consolidates near 1.0400 as ECB policy stance meets expectations

EUR/USD traded sideways around 1.0400, showing minimal reaction to the European Central Bank's policy communications that aligned with market expectations. The pair remained range-bound within a 0.15% band as traders digested the ECB's stance, which offered no surprises regarding future monetary policy direction. Market participants had already priced in the central bank's current approach to managing eurozone inflation and growth concerns. The lack of fresh catalysts kept the euro confined between 1.0380 support and 1.0420 resistance levels. US Dollar Index futures showed modest strength at 108.20, limiting upside potential for EUR/USD. With no significant policy shifts from the ECB, traders are now focusing on upcoming US economic data releases and Federal Reserve commentary for directional cues. Near-term consolidation appears likely unless external factors provide fresh momentum to break the established trading range.