FX Markets Stay Rangebound as Traders Eye US CPI; Oil and Gold in Focus

Major forex pairs traded in tight ranges during the European session on Monday, with markets lacking fresh catalysts ahead of the upcoming US CPI data release. USD/JPY remains capped on the upside as intervention fears persist, with Credit Agricole noting that Japanese authorities' vigilance continues to limit dollar-yen gains. In commodities, crude oil stabilized above $68 after war premium concerns faded, though reports of another tanker damaged near the Strait of Hormuz injected fresh geopolitical uncertainty. Gold demand remains robust as China extended its buying spree for a 20th consecutive month, boosting reserves and underpinning the precious metal's safe-haven appeal. The S&P 500 maintained a slight bullish tilt within its range, reflecting cautious optimism. ECB's Panetta offered comments suggesting nuanced policy considerations in the eurozone. Traders should watch the US CPI print closely, as it will likely dictate near-term direction across dollar pairs, potentially breaking the current consolidation phase and setting the tone for Federal Reserve policy expectations.