The euro declined in the European market on Tuesday against a basket of global currencies, deepening its losses for the fourth consecutive day against the US dollar and recording its lowest level in two weeks, as investors interpreted the terms of the trade agreement between the European Union and the United States as favoring the US economy.

Following a hawkish meeting by the European Central Bank last week, the probability of a European interest rate cut in September has declined. In order to reprice those expectations, investors await the release of several key economic indicators from Europe — especially inflation levels for July.

Price Overview

• EUR/USD exchange rate today: the euro fell against the dollar by 0.1% to $1.1575 — the lowest since July 17 — from today’s opening price of $1.1588, with a high of $1.1599.

• The euro closed Monday’s session down by 1.3% against the dollar, marking its third consecutive daily loss and the largest one-day loss since May 12.

EU–US Trade Agreement

During their meeting in Scotland on Sunday, US President Donald Trump and European Commission President Ursula von der Leyen announced a new trade agreement that includes the following:

• The agreement imposes US tariffs on imports from Europe — including cars, pharmaceuticals, and semiconductors — at a rate of 15%, starting from August 1.

• A selected group of US goods was fully exempted from European tariffs under a “no-reciprocity” framework. These include aircraft parts, semiconductor equipment, some generic medicines, chemicals, and strategic agricultural products.

• Tariffs on steel and aluminum will remain at 50% for now, with an agreement to possibly replace them later with a quota system.

• The European Union committed to injecting up to $600 billion in investments into the US economy during Trump’s second term.

• The EU also pledged to purchase approximately $750 billion worth of US energy products, including liquefied natural gas and nuclear coal, over the next three years.

• Trump noted that the deal aims to reduce the US trade deficit with the EU, which reached $235.6 billion in 2024.

• Von der Leyen described the agreement as providing “stability and predictability” for both sides, with a focus on “rebalancing” the trade relationship.

European Reactions

France on Monday described the trade framework agreement as a “black day” for Europe, saying that the EU had capitulated to President Donald Trump with an unbalanced deal.

German Chancellor Friedrich Merz stated that his economy would suffer “significant” harm from the agreed-upon tariffs.

Opinions and Analysis

• Ray Attrill, Head of FX Strategy at National Australia Bank, said: It didn’t take long for markets to conclude that this relatively good news is still, in absolute terms, bad news regarding the short-term impact on eurozone growth.

• Attrill added: The French have condemned the deal harshly, while others — including Chancellor Merz — may be overstating the negative consequences for exporters and, by extension, for economic growth.

European Interest Rates

• The European Central Bank last week kept key interest rates unchanged at 2.15% — the lowest level since October 2022 — after having cut them in the previous meeting for the seventh time in a row.

• The ECB opted to pause its monetary easing, awaiting clarity on the future of US trade relations.

• ECB President Christine Lagarde said after the policy meeting: “We are in a wait-and-see mode.” She added that the eurozone economy has shown resilience despite global economic uncertainty.

• According to Reuters sources, a clear majority at the ECB meeting expressed a preference to keep interest rates unchanged in September, marking the second consecutive meeting with such sentiment.

• Money market pricing for a 25 basis point ECB rate cut in September has dropped from 50% to below 30%.

• To reprice those expectations, investors will closely watch upcoming economic data from Europe, as well as comments from ECB officials.

The Japanese yen declined in the Asian market on Tuesday against a basket of major and minor currencies, deepening its losses for the fourth consecutive day against the US dollar and recording its lowest level in two weeks, as the US currency continued to shine following recent trade developments and ahead of the Federal Reserve meeting.

The Bank of Japan is scheduled to meet on Wednesday to discuss monetary policy appropriate to recent economic developments in the country, with the probability of a 25 basis point interest rate hike remaining below 20%.

The Price

• USD/JPY exchange rate today: the dollar rose against the yen by 0.15% to ¥148.71 — the highest since July 18 — up from today's opening price of ¥148.50, with a low of ¥148.29.

• The yen lost 0.6% against the dollar by Monday’s close, marking its third consecutive daily loss, amid improved risk appetite in markets.

US Dollar

The US Dollar Index rose by about 0.1% on Tuesday, extending its gains for the fourth consecutive session and reaching a two-week high at 98.71 points, reflecting continued strength in the US currency against a basket of major and minor currencies.

This rise comes as fears of a US economic slowdown eased following recent trade agreements signed by the United States with Japan and the European Union.

In addition, strong economic data pointed to the possibility that the Federal Reserve may take longer before resuming US interest rate cuts.

Later today, the highly anticipated Federal Reserve monetary policy meeting will commence, with decisions expected on Wednesday. Forecasts indicate that US interest rates will likely remain unchanged for the fifth consecutive meeting.

Bank of Japan

• The Bank of Japan will meet on Wednesday to discuss monetary policy suitable to developments in the world’s fourth-largest economy, with decisions expected on Thursday.

• Market pricing for a 25 basis point rate hike by the Bank of Japan in this meeting currently holds steady at around 20%.

• Bank of Japan Governor Kazuo Ueda previously stated that the economy and prices are facing strong downward pressures, and that the Bank of Japan has limited room to support growth by cutting interest rates, with the short-term interest rate remaining at 0.5%.

• Former Bank of Japan Deputy Governor Hiroshi Nakaso said it is likely the Bank will resume interest rate hikes once uncertainty over the impact of US tariffs on the economy recedes.

In the fast-paced world of clean energy innovation, biogas rarely takes center stage. It doesn’t shine like solar power, nor does it generate buzz like batteries, and it doesn’t stir geopolitical tension the way hydrogen does. But quietly, consistently, and with growing impact, it is already doing what many climate technologies still only promise to achieve someday: replacing fossil fuels today.

Biogas is produced from organic waste, agricultural residues, and even sewage sludge. It is essentially biogas that has been refined to contain a high concentration of methane, making it suitable to replace fossil-based natural gas. It can be injected into existing gas grids, used for transportation, or serve as feedstock for chemicals and fertilizers. In a world striving to decarbonize gas use without rebuilding infrastructure from scratch, biogas is proving to be an indispensable bridge — and in some sectors, even a long-term solution.

Biogas in Europe: From Policy Margins to a Key Energy Asset

Europe has long taken biogas more seriously than most. France in particular has emerged as a leader, thanks to a supportive feed-in tariff system, regional planning, and commitments to grid injection. The country now hosts over 600 biogas production plants and is targeting 20 terawatt-hours of output by 2030 — a goal it may actually surpass.

The United Kingdom has also begun relying on biogas, with its "Green Gas Support Scheme" offering financial incentives for anaerobic digestion plants that upgrade biogas to biomethane. Its use in transportation, especially for heavy vehicles that are difficult to electrify, is receiving increasing attention as a near-term alternative to diesel.

Denmark, Germany, and Italy are moving in the same direction, often linking biogas development to agricultural policies, waste management, and even rural economic growth. It’s a case study in how climate goals can align with the logic of a circular economy.

More importantly, biogas is no longer being merely blended with conventional gas — in some networks, particularly in rural or isolated areas, it is already replacing fossil gas entirely. This is a game changer: from partial substitution to full decarbonization.

North America: From RNG Buzz to Steady Deployment

Across the Atlantic, biogas — more commonly referred to as renewable natural gas (RNG) — is gaining traction in the United States and Canada, albeit through a different pathway. Much of this growth is driven by transportation credits, such as California’s Low Carbon Fuel Standard, which has spurred gradual expansion, particularly in waste-to-fuel applications.

In the US, major gas utilities have started investing in RNG as part of their decarbonization pledges, and several states are beginning to set procurement targets. In Canada, clean fuel regulations and province-level support programs are paving the way for biogas expansion in transportation and stationary uses.

Although the US Inflation Reduction Act is more commonly associated with hydrogen and carbon capture and storage, it also contains provisions that could support RNG. Meanwhile, the private sector — especially in agricultural states — is investing in livestock-based biogas, with added benefits of methane reduction and fertilizer production.

That said, the US still faces challenges that Europe has already begun to address: fragmented policies, limited network access, and the lack of a national strategy that visibly includes biogas. But the potential is clear, and the building blocks are in place.

Beyond Energy: The Circular Economy Advantage of Biogas

One of biogas’s most valuable attributes is its ability to align with other sustainability goals.

In addition to reducing carbon emissions, biogas helps:

- Process organic waste

- Lower methane emissions from agriculture

- Enhance fertilizer self-sufficiency

- Create rural jobs

- Reduce pressure on sewage systems

It thus acts as a circular solution — transforming waste into energy, fertilizers, and economic opportunities.

Conclusion

Biogas may not make headlines, but it is helping to shape the energy transition in tangible, measurable ways. Across both Europe and North America, the sector’s growth reflects a shift in mindset: decarbonization isn’t just about futuristic inventions, but also about using the tools we already have — intelligently and efficiently.

In earlier publications, the author examined how technologies like hydrogen and carbon capture can help decarbonize industry and energy systems. Biogas deserves a place in that discussion. It is practical, circular, and increasingly scalable.

As policymakers seek climate solutions that are fast, affordable, and methodical, they should not overlook this quiet climber. Biogas has already proven that it can rise to the challenge — digester by digester, pipe by pipe, molecule by molecule.

Most US stock indices held steady in positive territory during Monday trading after a strong opening, as markets absorbed the recently reached customs trade agreement between the United States and the European Union.

The agreement, announced on Sunday, stipulates the imposition of a 15% tariff on most European goods instead of 30%. US President Donald Trump also indicated that the deal includes a commitment from the European Union to purchase $750 billion worth of US energy products over the coming years.

Meanwhile, senior officials from the United States and China are scheduled to meet in Stockholm on Monday in an effort to extend the trade truce before the August 12 deadline.

During this busy week, investors await more corporate earnings reports, most notably Meta and Microsoft on Wednesday, followed by Amazon and Apple on Thursday.

The Federal Reserve also begins its meeting today, which will continue through Wednesday, amid expectations to keep the interest rate within the range of 4.25% to 4.5%.

In trading, the Dow Jones Industrial Average fell by less than 0.1% (equivalent to 29 points) to 44,873 points as of 16:27 GMT. The broader S&P 500 rose by less than 0.1% (equivalent to 0.5 points) to 6,389 points, while the Nasdaq Composite Index rose by 0.2% (equivalent to 41 points) to 21,150 points.