USD Pairs Consolidate as Markets Await Fed Decision and Earnings

Major USD pairs are trading in narrow ranges as global markets adopt a wait-and-see approach ahead of a critical week featuring the Federal Reserve's interest rate decision and a flood of corporate earnings reports. Mixed sentiment is dominating price action, with risk appetite tempered by stalled U.S.-Iran peace talks adding a layer of geopolitical uncertainty. The dollar index is holding steady as traders avoid taking directional bets before the Fed, where market participants will scrutinize the policy statement for any shifts in rate guidance. Upcoming central bank decisions beyond the Fed are also keeping traders cautious across EUR/USD, GBP/USD, and USD/JPY. The lackluster conditions suggest tight consolidation ranges may persist until Wednesday's FOMC announcement provides a catalyst. Near-term volatility is expected to spike significantly around the decision. Traders should prepare for potential breakouts in major pairs once the Fed's tone is digested, particularly if forward guidance diverges from current market pricing.