• Like
  • Comment
  • Favorite

Major Escalation in U.S.-European Tensions Would Likely Hurt Euro -- Market Talk

Dow Jones01-20 17:46

0946 GMT - A major escalation in tensions between the U.S. and Europe could create a bigger problem for the euro than the dollar, Barclays analysts say in a note. President Trump has threatened tariffs against several European nations in his efforts to acquire Greenland from Denmark. The worst-case scenario could be the U.S. removing itself from NATO, the analysts say. This would hurt the euro given Europe's reliance on the U.S. for defense, they say. Assuming an escalation is avoided in the near term, however, the dollar could fall as investors trim recent bets on the currency rising and increase protection against any declines, they say. The euro rises 0.7% to a two-week high of $1.1728, LSEG data show. (renae.dyer@wsj.com)

 

(END) Dow Jones Newswires

January 20, 2026 04:46 ET (09:46 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Report

Comment

empty
No comments yet
 
 
 
 

Most Discussed

 
 
 
 
 

7x24