USD: Tariff threats over Greenland weigh on US Dollar – Scotiabank

Renewed tariff threats concerning Greenland from February have raised concerns over the US Dollar. The opposition from certain European countries prompts a continued deterioration in western alliances and geopolitical stability. Investors are adopting a cautious stance due to trade uncertainties influencing market sentiment and potentially weakening the Dollar against major currencies. This geopolitical tension risks isolating the U.S. and could hamper economic growth, increasing currency volatility. Market participants are likely to stay alert to Dollar movements, especially around economic data releases. While demand for safe-haven assets may rise, the current status of the USD does not indicate strong buying signals but rather suggests a neutral stance.