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EUR/USD rallies for the second straight day, gains over 0.69% as the US Dollar gets ditched over US President Trump threats of imposing duties on European countries on his ambitions to take over Greenland. Economic data in Europe and the US take’s the backseat at the time of writing. The shared currency trades at 1.1724 late in the North American session. Euro extends gains as escalating US–EU trade tensions revive the “Sell America” narrative Market sentiment remains negative as the US and Europe escalate the ongoing trade war which began last Saturday, spurred by the White House, which threatened with 10% tariffs on imports of eight European countries.  Although Wall Street enjoyed a quiet session on Monday, due to a holiday, once the financial markets reopened, the S&P 500 and the Nasdaq, tumbled 2.1% and 2.39%, respectively. In addition to this, global bond yields are soaring after Sanae Takaichi the Japanese Prime Minister revealed her intentions to cut taxes on food, triggering a Liz Truss moment. The Japanese 40-year bond yield soared nearly 29 basis points to a record high of 4.226% on Tuesday. Data-wise, the US jobs market printed solid figures despite missing the mark according to ADP. In Europe, inflation on the producer side in Germany, plunged deeper into deflationary territory, while the ZEW Survey Economic Sentiment in Germany and the European Union (EU) showed signs of improvement. What’s in the calendar on January 21? The EU’s schedule will feature a speech of Christine Lagarde, the President of the European Central Bank (ECB), followed by speeches of ECB members Escriva, Villeroy, Nagel and Lagarde, once more. In the US, traders will digest Trump’s speech and housing data. Daily digest market movers: Geopolitics tumble the Greenback as economic data is ignored The US Dollar Index (DXY), which tracks the…

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Filed under: News - @ January 21, 2026 12:27 am