Our former president Donald Trump may have been the catalyst for this current conversation on Greenland. He argues that the United States ought to assert control over the land. He has made clear on numerous occasions that the U.S. should threaten military force to acquire Greenland. This audacious statement has sparked new interest with an eye towards the geopolitical implications of making a claim such as that.
Greenland is still the subject of renewed international interest and concern, after all, in the wake of Trump’s incendiary comments. The irony deepens as the U.S. dollar continues to go through a correction of its own. It has been bouncing around since late December. Relatedly, the dollar index is making a play for a major downtrend resistance line at 99.30. This unexpected turn of events has raised alarm amongst economists and investors alike.
The most recent U.S. inflation data, released last Wednesday, was unchanged at 2.7% year-over-year, right in line with expectations. This regularity and predictability in inflation figures is peculiar, especially considering the volatility of the dollar’s performance. Broader dollar outlook Analysts caution that the dollar will fall more sharply if it breaks lower out of the present corrective channel. A drop below the newly announced 98.67 would set this decline in motion.
With the dollar nearing this potentially pivotal resistance level, traders are on high alert to key economic releases and developments in the geopolitical landscape. The recent rhetoric from Trump, and how that language affected market sentiment, especially around the stability of the U.S. currency, serves as a recent example.