The euro fell to $1.16, the lowest level in about a month, pressured by a modest rebound in the US dollar. The dollar’s strength was supported by easing expectations of Fed rate cuts this year, following recent inflation data and as President Trump signaled he would not dismiss Fed Chair Jerome Powell. Meanwhile, markets remain focused on trade developments, with optimism persisting that a deal between the US and the EU could be reached before August 1st. President Trump announced a 30% tariff on European Union imports starting next month, but later expressed willingness to negotiate. In response, the EU reaffirmed its commitment to securing a trade agreement. On the monetary policy front, investors broadly expect the ECB to hold interest rates steady at its meeting next week. However, markets are still pricing in one additional 25 basis point rate cut later this year. Eurozone inflation was confirmed at 2% year-on-year in June, with core inflation holding at 2.3%.