EUR/USD Forex Signal: Driven by EU/Trump Tensions, Tariffs – 21 January 2026
The prospect of a renewed US/EU trade war over Greenland could produce wild moves in this currency pair

The prospect of a renewed US/EU trade war over Greenland could produce wild moves in this currency pair
USD/JPY experienced major volatility on Tuesday amid rising Japanese bond yields, but strong carry trade dynamics continue to favor the US dollar.
Following a two-day rally that lifted EUR/USD to a fresh three-week high above 1.1750, the pair corrects lower toward 1.1700 in the European session on Wednesday. Investors adopt a cautious stance as they await US President Donald Trump’s speech at the World Economic Forum in Davos.
The NASDAQ 100 bounced from key support at 25,000 on Tuesday as traders shifted focus from geopolitical noise to the upcoming earnings season.
Gold prices continue to climb on Tuesday as geopolitical tensions and US dollar weakness fuel bullish momentum, with $5,000 per ounce now in sight.
The Australian dollar is testing major resistance against the USD, fueled by stronger Chinese manufacturing data, RBA rate hike expectations, and rising commodity demand.