Dollar Stuck at 99, Greenland Drama Not Over
The US dollar index hovered around 99 on Tuesday, after falling sharply in the previous session. Pressure stemmed from escalating tensions between Washington and Europe over US President Donald Trump's plan to "buy" Greenland, which has shaken confidence in US assets.
Last weekend, Trump warned that eight European countries that reject the plan could face 10% tariffs starting February 1. He also threatened to increase the tariffs to 25% on June 1 if no agreement is reached on Greenland. This threat immediately sparked market concerns about a new round of trade conflict.
European leaders condemned the statement as unacceptable, while weighing possible response options. In the markets, the biggest fear is not just the tariffs themselves, but the domino effect: pressure on trade, growth, and then global investment sentiment.
Some analysts warn that Europe holds large positions in US assets, including significant amounts of bonds and stocks. This could be a "trick" if the trade dispute escalates, as shifts in investment flows could directly impact the dollar and US financial markets.
In the meantime, investors are also starting to shift their focus to this week's US data agenda. The market awaits the release of key indicators such as the PCE price index, the latest estimate of third-quarter GDP, the S&P PMI, and the University of Michigan consumer sentiment survey—data that could determine whether the dollar can recover or remain under pressure. (asd)
Source: Newsmaker.id
