The dollar index fell to a 2-week low, down by -0.84%, due to President Trump’s interest in Greenland, sparking trade fears. Trump threatened tariffs on French champagne after Macron’s peace initiative refusal. The euro rose as German ZEW survey expectations hit a 4.5-year high. German Dec PPI fell -2.5% y/y.

The FOMC is expected to cut rates by -50 bp in 2026, while BOJ might raise rates by +25 bp. The ECB unlikely to change rates in 2026. The Fed’s liquidity boost and possible dovish Fed Chair pick by Trump weigh on the dollar. EUR/USD rallied to a 3-week high, up +0.66%.

USD/JPY down by -0.03% as trade tensions rise between the US and Europe over Greenland, sparking yen’s safe-haven demand. Japanese government bond yields at a 27-year high. Yen initially lower due to Japanese deficits concern, sales tax cut promise. Yen under pressure from Takaichi’s fiscal policy.

Precious metals surge today with Feb gold and Mar silver hitting new highs. Dollar index drop, Greenland crisis, and safe-haven buying drive demand. Central bank gold demand remains strong. Fund demand for gold and silver ETFs at multi-year highs. Global central banks purchased 220 MT of gold in Q3.

Read more at Yahoo Finance: Dollar Sinks and Precious Metals Soar as Greenland Crisis Escalates