Donald Trump Drops Tariff Threats and Rules Out Greenland Seizure Prompting Market Repricing

President donald trump dropped his tariff threats and ruled out seizing Greenland by force on January 22, 2026, a policy reversal that immediately unwound the Sell America trade across global markets. This de-escalation significantly reduced safe-haven demand and allowed for a major currency market repricing as investors shifted their focus toward upcoming economic data. The move follows a period where the policy uncertainty created by the US USadministration had previously spooked markets and triggered a broad selloff of American assets.

In the foreign exchange markets, the USdollar fell 0.10% to $1.1698 per euro for the Euro / US Dollar EURUSDpair, which followed a 0.35% rebound in the prior session. The U.S. dollar had rebounded versus the euro on Wednesday on remarks from the president, after having lost less than 1% between Monday and Tuesday. Against the Swiss Franc CH, the US Dollar / Swiss Franc USDCHFweakened 0.25% to 0.7932 after leaping 0.7% in previous trading. Analysts noted that the latest developments have prompted a risk-management and hedging unwinding rather than a structural reallocation of capital.