EUR/USD rises toward 1.1650 despite increased risk aversion
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EUR/USD gains ground after four days of losses, trading around 1.1630 during the Asian hours on Monday. The upside in the risk-sensitive pair may remain capped amid rising safe-haven demand, driven by escalating uncertainty surrounding the US–Greenland issue. According to Bloomberg, US President Donald Trump said on Saturday that he would impose tariffs on eight European countries opposing his proposal to acquire Greenland. Trump stated that a 10% tariff would be levied on goods from EU members Denmark, Sweden, France, Germany, the Netherlands, and Finland, as well as Britain and Norway, effective February 1, until the US is permitted to purchase Greenland. Meanwhile, European Union ambassadors reached a broad agreement on Sunday to step up efforts to dissuade Trump from implementing the tariffs, while also preparing retaliatory measures should the duties proceed. The US Dollar (USD) could regain ground against its major peers as stronger US labor market data have pushed back expectations for further Federal Reserve (Fed) rate cuts until June. Fed officials have signaled little urgency to ease policy further until there is clearer evidence that inflation is sustainably moving toward the 2% target. Meanwhile, Morgan Stanley analysts revised their 2026 outlook, now forecasting one rate cut in June followed by another in September, compared with their previous expectation of cuts in January and April. Euro FAQs The Euro is the currency for the 20 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar. In 2022, it accounted for 31% of all foreign exchange transactions, with an average daily turnover of over $2.2 trillion a day. EUR/USD is the most heavily traded currency pair in the world, accounting for an estimated 30% off all transactions, followed by EUR/JPY (4%), EUR/GBP (3%) and EUR/AUD (2%).…
Filed under: News - @ January 19, 2026 2:14 am