The euro traded around $1.17, hovering near a three-week low, as traders weighed ongoing trade developments. US President Trump announced a 30% tariff on imports from the European Union starting August 1st, though he later signaled openness to negotiations. In response, the EU reiterated its commitment to securing a trade agreement and said it would hold off on immediate countermeasures, extending the suspension of planned retaliatory tariffs until early August to allow for continued dialogue. On the monetary policy front, investors largely expect the ECB to keep borrowing costs unchanged at next week’s meeting. However, markets are still pricing in one more 25bps rate cut later this year. Despite the recent pullback in July, the euro remains up nearly 13% against the dollar year-to-date, supported by broad dollar weakness and renewed optimism about the eurozone’s economic outlook, particularly after Germany’s shift toward increased fiscal spending.