The euro fell in European markets on Monday against a basket of major global currencies, deepening its losses for the fourth consecutive day against the U.S. dollar and recording its lowest level in three weeks. The decline comes amid threats from Donald Trump to impose tariffs of around 30% on European products starting this August.

The European Union rejected Trumps trade threats and decided to extend its suspension of retaliatory tariffs on U.S. products until August 1, while continuing to push for a negotiated resolution.

With growing uncertainty surrounding the possibility of a European interest rate cut at this months European Central Bank meeting especially after Junes key inflation data investors are awaiting further important economic indicators from the eurozone.

The Price

Euro exchange rate today: The euro fell against the dollar by 0.3% to $1.1654 its lowest level since June 26 down from Fridays closing price of $1.1688. The euro reached a session high of $1.1698.

On Friday, the euro ended the session down 0.1% against the dollar, marking its third straight daily loss amid Trumps trade pressure on the EU.

Last week, the euro lost 0.7%, its first weekly loss in three weeks, as part of a correction and profit-taking move from a four-year high of $1.1830.

Trump's Trade Threats

On Saturday, U.S. President Donald Trump announced his latest tariff measures in two separate letters to European Commission President Ursula von der Leyen and Mexican President Claudia Sheinbaum, both posted on his social media platform Truth.

Trump threatened to impose 30% tariffs on the European Union and Mexico two of the U.S.'s largest trading partners starting August 1.

In a swift response, the European Union said it would extend its suspension of countermeasures on U.S. tariffs until early August and continue pressing for a negotiated settlement.

U.S. Dollar

The dollar index rose on Monday by 0.25%, extending gains for the third straight session and hitting a three-week high of 98.10 points, reflecting continued strength in the U.S. currency against both major and minor currencies.

Carol Kong, a currency strategist at Commonwealth Bank of Australia, said: Financial markets seem increasingly indifferent to President Trumps tariff threats now, after these warnings have been repeated several times in recent months.

Beyond tariff headlines, Trump stated on Sunday that it would be great if Federal Reserve Chair Jerome Powell resigned, once again threatening the central banks independence as he called for interest rate cuts.

European Interest Rates

According to Reuters sources, a clear majority at the last European Central Bank meeting favored keeping interest rates unchanged in July, with some calling for a longer pause.

Money markets currently price in a roughly 30% chance that the ECB will cut rates by 25 basis points in July.

To reassess those expectations, investors are closely watching upcoming economic data from Europe as well as comments from ECB policymakers.