FX.co ★ Euro Strengthens Above $1.17

The euro surged past $1.17, marking its highest level since January 6, buoyed by stronger-than-anticipated German economic data, while ongoing geopolitical strains adversely impacted the US dollar. Germany’s ZEW Economic Sentiment Index leaped to 59.6 in January, the most elevated since July 2021, surpassing expectations of 50. This suggests a positive outlook for an economic resurgence in 2026, despite uncertainties linked to US trade policy. Concurrently, the dollar waned amid renewed tariff threats from US President Donald Trump, who indicated potential 10% tariffs on various European nations to pressure Denmark into selling Greenland to the US. Trump claimed that Europe might not resist significantly as global leaders convene in Davos, while the EU contemplates comprehensive retaliatory measures, including imposing tariffs reaching up to €93 billion on US products.