The euro declined in the European market on Friday against a basket of global currencies, extending its losses for a third consecutive day against the U.S. dollar and nearing a two-week low, putting it on track for a weekly loss. The decline comes amid expectations that the European Union will receive a formal U.S. tariff letter later today.

Recent core inflation data from Europe has increased uncertainty around the likelihood of a European rate cut in July, as investors await further key economic indicators from the eurozone.

The Price

- EUR/USD today: The euro fell 0.3% to $1.1664, down from the opening price of $1.1699, after hitting a session high of $1.1707.

- The euro ended Thursday down roughly 0.2% against the dollar, its second straight daily loss, after touching a two-week low at $1.1662.

Weekly Performance

Over the course of the week, which officially concludes at Fridays settlement, the euro is down about 0.9% against the U.S. dollar. This puts the common currency on track for its first weekly loss in three weeks, driven by profit-taking after reaching a four-year high of $1.1830.

U.S. Dollar

The U.S. dollar index rose 0.35% on Friday, extending gains for a second session and approaching a two-week high at 97.92 points, reflecting continued strength in the greenback against a basket of major and minor currencies.

The dollars rise comes amid mounting signs of disruption in global trade, after President Donald Trump announced additional tariffs. He said he intends to impose blanket tariffs of 15% or 20% on most of Americas trading partners.

Trump also confirmed a 35% tariff on goods imported from Canada. In a message posted on Truth Social, he informed Canadian Prime Minister Mark Carney that the new tariffs would take effect on August 1 and could increase further if Canada retaliates.

Potential Tariffs on the European Union

Trump stated on Thursday that the European Union may receive a formal tariff letter by Friday, casting fresh doubt over the progress of trade talks between Washington and Brussels.

Earlier this week, European sources familiar with the matter told Reuters that the EU might not receive a tariff letter and could potentially be granted exemptions from the 10% U.S. base tariff.

European Interest Rates

- The eurozones headline consumer price index rose 2.0% year-on-year in June, in line with market expectations, after a 1.9% increase in May.

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

- Current money market pricing suggests a 30% probability of a 25-basis-point rate cut by the ECB in July.

- To reprice those odds, investors will be closely watching upcoming economic data from across the eurozone, as well as remarks from ECB policymakers.