EUR/USD Consolidates as Markets Await US CPI; Eurozone Data Unlikely to Move ECB

EUR/USD remains range-bound during Monday's European session as traders adopt a wait-and-see approach ahead of next Tuesday's critical US CPI report. Today's economic calendar features low-tier Eurozone releases, including Retail Sales and PPI data, neither of which is expected to shift ECB policy expectations or generate meaningful price action. The market's consolidation phase reflects a broader pause across major pairs following the recent US Non-Farm Payrolls report, which had limited impact on interest rate expectations. Traders are instead focusing on the upcoming inflation data as the primary catalyst for repricing Federal Reserve rate path assumptions. The lack of high-impact events today suggests tight ranges and subdued volatility across euro and dollar pairs. Near-term direction will likely hinge on whether US CPI confirms or challenges the current Fed policy outlook. Traders should manage position sizing accordingly during this low-volatility window and prepare for potential breakout moves once the inflation data is released next week.