FX.co ★ Dollar Pares Losses

The dollar index trimmed its early declines to hover around the 98.6 mark on Wednesday. This adjustment came as investors scrutinized President Trump's address at the World Economic Forum in Davos. During his speech, the President reiterated his intention to acquire Greenland, noting the pursuit of "immediate negotiations to once again discuss the acquisition of Greenland by the US," while explicitly dismissing any use of force. At the same time, apprehensions about a potential resurgence of a trade conflict between the United States and Europe continued, as European legislators put a hold on the ratification of the trade deal agreed upon by the EU and the US in July. The dollar has faced sustained pressure this week due to new tariff threats against Europe and President Trump’s renewed efforts concerning Greenland, fueling a resurgence of the so-called "Sell America" sentiment in financial markets.