New threats to impose US tariffs on Greenland are unwelcome news for European industry, coming as sentiment begins to recover from last year’s volatility. EUR/USD finds support near 1.1600, with intraday resistance at 1.1650 and high volatility reflecting market uncertainty over trade developments, notes Chris Turner, FX analyst at ING.
EUR/USD pair stabilizes above 1.1600 amid market uncertainty
“The eruption of the Greenland dispute and the threat of renewed tariffs is not at all welcome for European industry. This comes at a time when industrial sentiment is finally starting to lift, as companies appear to have learned to live with the volatility of tariffs in the past year.”
“These developments will focus European minds on the need to generate domestic demand, and perhaps even push for slow-moving reforms such as the Savings and Investment Union, to allow Europe’s capital markets to better compete with US markets.”
“EUR/USD found support below 1.1600. Key intraday resistance is seen at 1.1650, above which 1.1690/1700 is possible. EUR/USD 1-week and 1-month trading volatility is set to be slightly higher, which is understandable given the uncertainty this week.”
