22 January 2026, 04:29 USA: Dollar Firms on Easing Tensions.
The dollar index steadied around 98.8 on Thursday, holding gains from the previous session as geopolitical and trade tensions between the US and Europe over Greenland eased. President Donald Trump ruled out the use of military force to acquire Greenland and walked back tariff threats against European countries after reaching a framework for a future agreement with NATO. However, details of the framework remain unclear, with Denmark ruling out any negotiations over ceding territory to the US. On the domestic front, investors looked ahead to weekly jobless claims for fresh signals on the labor market. The Federal Reserve is widely expected to keep interest rates unchanged next week, though markets still anticipate rate cuts totaling 50 basis points later this year. The dollar strengthened mainly against the euro, while continuing to weaken versus the Australian and New Zealand dollars.
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