Analysts: The market will focus on the "TACO deal," and Trump may use tariff threats as a negotiating tactic.

According to Mars Finance, on January 19th, analysts stated that the US dollar is facing renewed downward pressure due to increased uncertainty surrounding US policy caused by President Trump's consideration of imposing tariffs on European countries over Greenland. Credit Agricole analyst David Forrest stated that Trump's tariff threats have reignited "sell America" sentiment. The market will also be watching the "TACO trade" (Trump backing out), as Trump may use tariff threats as a negotiating tactic. This will provide some support for the dollar. In 2026, with the escalation of geopolitical risks during President Trump's term, the euro will be one of the biggest losers. Tariffs could exacerbate cyclical headwinds in the Eurozone economy and further weaken European pressure on Russia regarding Ukraine. (Jinshi)