Subdued dollar firms after ECB leaves rates alone; tariffs and Fed in focus

Summary

Little reaction in euro after ECB holds rates steady, as expected
Expectations for higher rates support yen, but politics weigh
Expected trade deal with Europe in line with expectations

July 24 (Reuters) – The dollar traded sideways versus the euro on Thursday after the European Central Bank held rates steady, and was confined to a tight range against the yen as prospects for higher Japanese rates offset worries about political risk after Sunday’s elections.

The greenback showed fractional gains late in a subdued U.S. session, with investors girding for a busy news flow next week.

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The European Central Bank left its policy rate at 2%, as expected, on Thursday, taking a break after a year of policy easing to wait for clarity over Europe’s future trade relations with the United States.