The euro edged lower toward $1.17 on Monday afternoon, as investors awaited further clarity on upcoming US tariff measures. The European Union said it is making progress toward a trade agreement with the US, aiming to prevent a major tariff escalation through a preliminary deal that would impose a 10% universal tariff on many goods, with reduced rates for key sectors such as pharmaceuticals, alcohol, semiconductors, and commercial aircraft. However, the EU also announced preparations for retaliatory tariffs on a range of US products in response to President Trump’s metal duties. Officials warned that, if no agreement is reached, additional measures - such as export controls and restrictions on US access to public contracts - may follow. Meanwhile, Commerce Secretary Howard Lutnick confirmed that the broader US tariff package - initially slated for July 9 - has been postponed to August 1. On the monetary policy front, markets are now pricing in just one more rate cut from the ECB this year.