FX.co ★ Euro Steady Ahead of US Tariff Clarity

The euro remained relatively stable, positioned just below $1.18, lingering near its peak since August 2021. This stability comes as investors await further details concerning the forthcoming tariff measures from the U.S. administration. President Trump is anticipated to dispatch approximately twelve formal notifications to trade partners later today, though it is still uncertain if EU countries will be among the recipients. Meanwhile, Commerce Secretary Howard Lutnick announced that the comprehensive tariff plan, initially slated for implementation on July 9, has been postponed until August 1. While this delay provides temporary respite, it prolongs the uncertainty faced by importers. On the monetary policy front, market expectations now include only one additional rate cut from the European Central Bank (ECB) this year. ECB officials have indicated that interest rates are likely to remain unchanged at this month’s meeting, following eight consecutive cuts since June 2024. With inflation now aligning with the 2% target, policymakers are adopting a cautious approach amidst ongoing global trade tensions and the euro’s recent rise in value.