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)
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