The euro slipped toward $1.17, retreating from a recent four-year high, as investors flocked to the dollar in response to a stronger-than-expected US jobs report. At the same time, markets digested comments from European Central Bank policymakers and the minutes from the ECB’s latest policy meeting. Speaking at the ECB Forum on Central Banking, President Christine Lagarde welcomed the June inflation print, which aligned with the central bank’s 2% target, but cautioned about “two-sided risks” linked to rising geopolitical tensions and increasing economic fragmentation. Other ECB officials signaled that interest rates are likely to be kept on hold at this month’s meeting, following eight consecutive cuts to the deposit rate since June 2024, amid persistent concerns over global trade uncertainty, instability in the Middle East, and the euro’s recent appreciation. Markets are now pricing in only one additional rate cut before year-end.