Global Markets Face Volatility as US and Japan Policy Moves Trigger Asset Selloff

White House threats over Greenland and Japanese fiscal expansion pledges triggered a broad selloff in global assets. Markets saw sharp moves in bonds and currencies.

Insights:
On Monday, January 20, 2026, U.S. President Donald Trump donald trumpmade renewed tariff threats against European allies over Greenland. This announcement triggered a broad selloff in United States USUSassets on Tuesday, January 21, as the U.S. Dollar Index declined 0.53 percent, marking its worst single-day performance in six weeks. By Wednesday, January 22, the U.S. Dollar Indexremained flat at 98.541 as global investors continued to monitor the geopolitical situation.
FILE PHOTO: U.S. dollar banknotes are seen in this illustration taken March 10, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: U.S. dollar banknotes are seen in this illustration taken March 10, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
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