EUR/USD Crumbles: Trump Cancels Tariff Threats, USD Gains Momentum...来自Followme

22 Jan 2026, 12:16 · 阅读量 3,844

EUR/USD Crumbles: Trump Cancels Tariff Threats, USD Gains Momentum

Lately, it has been a volatile week for EUR/USD as US President Donald Trump canceled planned tariffs on Europe, easing trade tensions. This shift in sentiment has allowed the US Dollar to regain strength, causing the Euro to retreat.The EUR/USD currency pair saw a drop of over 0.30% following US President Donald Trump’s decision to cancel the planned tariffs on eight European countries in light of the ongoing Greenland discussions. Right now, all the market participants are turning their attention to upcoming US economic data and the European Central Bank’s (ECB) monetary policy outlook, this dynamic could impact the forex market in the coming days.

Euro Retreats as the US–EU Trade Tensions Ease:

Trump's decision to refrain from imposing tariffs provided relief to market participants, as the global risk appetite improved significantly. This positive sentiment helped lift US equities with three out of four major indices closing the day with gains between 1.16% and 1.21%. The decision directly influenced the US Dollar’s strength, pushing the US Dollar Index (DXY) up by 0.20%, reaching a level of 98.75.

US Market Sentiment:
- Risk appetite surged following Trump's announcement.
- US equities rallied, with major indices seeing robust gains.
- The US Dollar strengthened as a result of the improved sentiment.

While the news from the US was generally positive, the Eurozone’s economic calendar remained eventful with speeches from ECB President Christine Lagarde and other key figures. These discussions were centered around trade policies, inflation, and the overall economic recovery, further influencing Euro price movements.

Source: Followme's "Markets" feature

Trump's Greenland Deal Leads to Trade Optimism:

The economic outlook for the US Dollar also received a boost from Trump’s diplomatic efforts with NATO Secretary General Mark Rutte. A meeting resulted in a framework for future discussions regarding Greenland and the broader Arctic region. In some recent posts, Trump confirmed that he would not be implementing the tariffs originally scheduled to take effect on February 1. This declaration lifted market sentiment and reduced the immediate pressure on the Dollar.

Technical Outlook: EUR/USD Faces Bearish Pressure Below 1.1700:

On the technical front, EUR/USD faced a pullback after reaching a high of 1.1743 earlier in the day. The pair dropped below the psychological level of 1.1700, opening the door for further declines. The Relative Strength Index (RSI) has shifted from bullish to bearish, suggesting that the pair could experience further downward movement in the short term.

Source: Wall Street Journal

Key Technical Levels:

1. Support at 1.1662 (50-day SMA).
2. Further support at 1.1600 and the 200-day SMA at 1.1590.
3. Resistance at 1.1700, with a potential rally to 1.1743 and 1.1769 if the pair gains momentum.
Traders will be closely monitoring whether the Euro can recover above the 1.1700 mark or if it will continue to test lower levels. The outcome will depend largely on the upcoming US GDP data, jobless claims, and the Core Personal Consumption Expenditures (PCE) Price Index.

EUR/USD Outlook Amid Trade and Economic Developments:
The cancellation of tariffs by Trump has introduced renewed optimism in the markets, bolstering the US Dollar and weighing on the Euro. This shift has created a dynamic environment for traders to navigate, especially with upcoming data releases that could further influence the EUR/USD pair.
As risk appetite improves and US economic data takes center stage, EUR/USD traders must stay alert to shifts in sentiment and technical signals.

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