FX.co ★ Euro Steady Ahead of ECB Decision and EU-US Trade Talks

The euro maintained its position slightly above the $1.16 level as investors anticipated the European Central Bank's (ECB) forthcoming policy announcement and monitored developments in EU-US trade relations. The ECB is projected to keep interest rates steady on Thursday following a series of eight consecutive reductions. Policymakers are expected to adopt a cautious approach, due to uncertainty surrounding the effects of unexpectedly high US tariffs and a strengthening euro on Europe's economic growth and inflation. Concurrently, EU representatives are gearing up for discussions potentially taking place this week about contingency plans in the event of a breakdown in negotiations with US President Donald Trump, whose stance on tariffs seems to have become more rigid approaching the August 1 deadline.