The euro stabilized just above the $1.14 level, holding near its weakest point since mid-June after recording a 3% decline against the US dollar in July - its first monthly loss of the year. Investors are assessing the impact of newly announced US tariff rates, unveiled last night. The effective US tariff rate has surged to approximately 15%, up from just over 2% at the beginning of the year - its highest level since the protectionist Smoot - Hawley Tariff Act of the 1930s. Among the key changes, tariffs on Canadian imports have risen to 35% from 25%, while those on Swiss goods increased to 39%. The EU now faces a 15% tariff on its exports to the US after reaching a last-minute deal just ahead of the August 1 deadline. On the monetary policy front, markets are pricing in a 90% probability of a 25 bps rate cut by the ECB by March 2026. In the US, Fed Chair Powell’s hawkish tone has tempered expectations of a rate cut at the September meeting.