The euro slid toward $1.165 on Monday, hitting its lowest level in over two weeks after US President Trump announced a 30% tariff on imports from the European Union and Mexico, effective August 1. The move intensified global trade tensions and weighed on the common currency. EU and Mexican officials signaled plans to continue negotiations with the Trump administration this month in an effort to secure a lower rate. European Commission President Ursula von der Leyen also said on Sunday that the EU would delay its retaliatory tariffs, which had been set to take effect today. Despite the recent pullback in July, the euro remains up nearly 13% against the dollar year-to-date, buoyed by broad dollar weakness and renewed optimism over the eurozone's economic outlook following Germany’s pivot toward greater fiscal spending. On the monetary policy front, the ECB is expected to keep rates steady at its upcoming meeting, though markets still anticipate at least one more rate cut later this year.