EUR/USD Holds Steady as Quiet European Session Awaits US CPI Data

EUR/USD is trading in a tight range during Monday's European session as the economic calendar offers little to drive price action. The session features only low-tier releases, including final French CPI and Italian industrial production data, neither of which is expected to alter the ECB's current policy outlook. With the US-Iran geopolitical tensions appearing to be contained, safe-haven flows have subsided, removing a key source of recent volatility. Market participants are now shifting their focus squarely to Tuesday's US CPI report, which is expected to be the primary catalyst for directional moves across major dollar pairs this week. A hotter-than-expected inflation print could reinforce the Federal Reserve's hawkish stance and boost the greenback, while softer data may fuel rate-cut expectations and weigh on the dollar. Traders are likely to remain sidelined in the near term, keeping EUR/USD confined within current ranges until the CPI release provides clearer directional cues.