The dollar stayed steady against the euro after the European Central Bank held rates. The ECB left rates at 2%, waiting for clarity on future trade with the US. The yen could face challenges after Japan’s elections. The EU is close to imposing a 15% tariff on goods, similar to the US-Japan deal.

German business activity grew in July, but France showed fragility. The impact of tariffs on data remains minimal. Risk assets rallied due to trade deals easing global economic fears. The Fed is expected to keep rates steady, with a 60% chance of a rate cut in September. Employment data next week will shape expectations.

The euro was down at $1.1766, near its highest level in three years. The dollar was stronger against the yen at 146.88. The yen could strengthen further due to trade deals and rate prospects. Japanese PM Ishiba denied resignation reports. Currencies shrugged off Trump’s visit to the Fed.

The dollar index rose to 97.36. Bitcoin increased to $11,376.30, while Ethereum rose to $3,735.62. Analysts foresee persistent challenges for the euro after the ECB’s decision. Data shows minimal tariff impact so far. Market optimism grows over potential rate hikes in Japan.

Read more at Yahoo Finance: Subdued dollar firms after ECB leaves rates alone; tariffs and Fed in focus