President Trump rules out Greenland seizure and drops tariff threats while markets recalibrate
President Trump dropped geopolitical and trade threats on Thursday causing a global currency shift. Market volatility eased as U.S. inflation data matched forecasts.
Insights:
President Donald Trump donald trumpdropped his tariff threats and ruled out seizing Greenland by force on January 22, 2026. This policy reversal by the US 
UScaused the dollar to weaken as the initial "sell America" trade faded. Markets recalibrated their expectations regarding trade policy and geopolitical risk, factors that had previously triggered broad selloffs of American assets. The policy clarification marks a material shift in market expectations and reverses much of the volatility-driven positioning seen during the prior week.
UScaused the dollar to weaken as the initial "sell America" trade faded. Markets recalibrated their expectations regarding trade policy and geopolitical risk, factors that had previously triggered broad selloffs of American assets. The policy clarification marks a material shift in market expectations and reverses much of the volatility-driven positioning seen during the prior week.Currency markets responded immediately to the news. The Euro/US Dollar strengthened to $1.1726 per euro, representing a 0.35% decline for the dollar. In the European Union 
EU, the dollar had recovered some ground on Wednesday due to earlier comments about Greenland, but those gains were erased. In Switzerland 
CH, the US Dollar/Swiss Franc weakened 0.52% to 0.7913 Swiss francs. In the Pacific region, the Australian Dollar/US Dollar rose to a 15-month high at $0.6818, marking a fourth straight daily gain for the currency of AU 
AU. This rise was supported by an unexpected decline in the jobless rate and speculation about interest rate differentials. The New Zealand Dollar/US Dollar also experienced movement as part of the broader realignment in NZ 
NZcurrency markets.
EU, the dollar had recovered some ground on Wednesday due to earlier comments about Greenland, but those gains were erased. In Switzerland CH, the US Dollar/Swiss Franc weakened 0.52% to 0.7913 Swiss francs. In the Pacific region, the Australian Dollar/US Dollar rose to a 15-month high at $0.6818, marking a fourth straight daily gain for the currency of AU AU. This rise was supported by an unexpected decline in the jobless rate and speculation about interest rate differentials. The New Zealand Dollar/US Dollar also experienced movement as part of the broader realignment in NZ NZcurrency markets.
