EUR/USD, USD/JPY drift in quiet session as Treasury buyback flows dominate

The trading day opens with an unusually light economic calendar, leaving major currency pairs without a fresh fundamental catalyst. The European session carries no scheduled data releases, meaning EUR/USD, GBP/USD and EUR/GBP are likely to consolidate within recent ranges or extend the directional moves already established following the latest Treasury buyback operation. Buyback-related flows have been influencing US yields, and any continued compression at the long end of the curve tends to weigh on the dollar, particularly against the euro and the yen, while supporting risk-sensitive currencies. In the absence of data, price action is typically driven by positioning adjustments, option expiries and liquidity conditions, which can exaggerate moves on thin volume. Traders should therefore prioritise technical reference levels and intraday structure over macro narratives, while remaining alert to headline risk from central bank speakers or fiscal announcements. Low-catalyst sessions often precede volatility expansion, so monitoring range boundaries for breakout attempts and keeping stops disciplined is prudent ahead of higher-tier releases later in the week.