US President Donald Trump delivered a keynote speech at the World Economic Forum in Davos.
The most important points in US President Trump’s speech
“You all follow us down and you will follow us.”
“Certain places in Europe are no longer recognizable.”
“Europe is not moving in the right direction.”
“The focus on green energy and mass immigration has hurt Europe.”
“We are very interested in the world of nuclear energy.”
“European energy has reached catastrophic lows.”
“We want Europe and the UK to do a great job.”
“China makes wind farms but they use coal, which is good.”
“The United States cares very much about the people of Europe.”
“We believe deeply in the bonds we share with Europe as a civilization.”
“Economic growth, trade and immigration are the core concerns of a strong and united West.”
“These are matters of national security.”
“Massive respect for Greenland, Denmark.”
“No country can secure Greenland other than the United States.”
“The United States established bases in Greenland for Denmark, and we fought for Denmark.”
“The United States saved Greenland and returned it to Denmark after World War II.”
“Denmark is ungrateful now.”
“Greenland sits unprotected in a key strategic location.”
“Seek immediate negotiations to discuss the acquisition of Greenland.”
He added, “This will not pose a threat to NATO, but rather will enhance the security of the alliance.”
“We give so much to NATO and get so little in return.”
“I will not use force.”
“The United States got nothing from NATO.”
“All we are asking for is Greenland right, title and ownership.”
“Greenland cannot be defended with a lease.”
“We will build the Gold Dome, and we will defend Canada.”
‘Canada’s Carney was not grateful to us in Davos speech’
This section below is published as an introduction to US President Donald Trump’s speech at the World Economic Forum (WEF) at 10:00 GMT.
US President Donald Trump is scheduled to deliver a keynote address at the World Economic Forum (WEF) to be held in Davos at 1:30 GMT. The speech is expected to start on time although Trump’s trip to Davos was postponed as Air Force One had to turn back due to a “minor electrical issue.”
Financial market participants will be watching Trump’s speech closely because it will signal other measures the White House has at its disposal to ramp up pressure on EU members, who oppose Washington’s plans to acquire Greenland.
Greenland’s Prime Minister Jens Frederik Nielsen made clear in a joint statement with Danish Prime Minister Mette Frederiksen that his economy would prefer to remain a semi-autonomous Danish territory.
So far, President Trump has imposed 10% tariffs on several EU members: France, Germany, Denmark, Norway, Sweden, the Netherlands, Finland and the United Kingdom, which will take effect from February 1, to oppose US control of Greenland, and has warned that additional tariffs could rise to 25% from the summer if no agreement is reached.
In response, EU members warned of proportionate countermeasures against Trump’s tariff threats, describing them as “blackmail.” French President Emmanuel Macron stressed the need to deploy an anti-coercion tool, called the “trade bazooka”, in response to Trump’s threats to impose tariffs. The New York Times (YT) reported that Macron said at the World Economic Forum on Tuesday that the world is approaching a time of “instability and imbalances,” and the answer is “more cooperation,” not a system that accepts the “law of the strongest.”
Officials around the world have also criticized Washington’s threats of additional tariffs. Canadian Prime Minister Mark Carney reiterated his support for EU members, noting that “the middle powers must work together because if we are not at the table, we are on the list,” the BBC reported.
How could Trump’s speech affect EUR/USD?
Signals in US President Trump’s comments that Washington intends to acquire Greenland, albeit by force, and will keep the option of military action on the table, would be unfavorable for the US dollar. Such a scenario could escalate tensions between the world’s largest economies, which could lead to a trade war. On the contrary, Trump’s mild comments on the Greenland crisis should ease geopolitical tensions and raise hopes for improved attractiveness of risk assets, the US dollar, and US assets.
EUR/USD is trading around 1.1700 at the time of writing. The 20-day Exponential Moving Average (EMA) rises at 1.1679 below the spot price, supporting a short-term bias. The pullback is expected to find initial demand around this dynamic level.
The 14-day Relative Strength Index (RSI) at 54 is neutral to flat, consistent with the measured bullish momentum. The downtrend line is advancing from 1.1921, with resistance at 1.1775. A daily close through this barrier may extend gains.
The rising trend line from 1.1393 supports the broader structure, offering support near 1.1533. Failure to cross 1.1775 will keep gains limited and leave room for consolidation above the trend base. Continuously pushing beyond the descending barrier would shift the emphasis upward, while staying below it would maintain range-limited tone.
(The technical analysis for this story was written with the help of an artificial intelligence tool.)
Frequently asked questions about the US dollar
The US dollar (USD) is the official currency of the United States of America, and the “de facto” currency of a large number of other countries where it is traded alongside local banknotes. It is the world’s most traded currency, accounting for more than 88% of total global forex trading volume, or an average of $6.6 trillion in transactions per day, according to 2022 data. After World War II, the US dollar took the place of the British pound as the world’s reserve currency. For most of its history, the US dollar was backed by gold, until the Bretton Woods Agreement in 1971 when the gold standard disappeared.
The most important factor affecting the value of the US dollar is monetary policy, which is shaped by the Federal Reserve. The Fed has two missions: achieving price stability (controlling inflation) and promoting full employment. The basic tool for achieving these two goals is adjusting interest rates. When prices rise too quickly and inflation is above the Fed’s 2% target, the Fed will raise interest rates, which helps the value of the US dollar. When the inflation rate falls below 2% or when the unemployment rate is very high, the Fed may cut interest rates, which affects the dollar.
In extreme cases, the Fed could also print more dollars and activate quantitative easing (QE). Quantitative easing is the process by which the Federal Reserve dramatically increases the flow of credit into a stuck financial system. It is a non-standard policy measure used when credit dries up because banks will not lend to each other (due to fear of the counterparty defaulting). It is a last resort when simply lowering interest rates is unlikely to achieve the necessary result. It has been the Fed’s weapon of choice to combat the credit crunch that occurred during the Great Financial Crisis of 2008. This involves the Fed printing more dollars and using them to buy U.S. government bonds mostly from financial institutions. Quantitative easing usually leads to a weakening of the US dollar.
Quantitative tightening (QT) is the reverse process whereby the Fed stops purchasing bonds from financial institutions and does not reinvest capital from bonds it holds outstanding in new purchases. It is usually positive for the US dollar.
