FX.co ★ Dollar Set for Sharp Weekly Drop

The dollar index hovered around 98.3 on Friday, poised for approximately a 1% decline over the week. This dip follows a turbulent period marked by uneasy investor sentiment due to evolving geopolitical dynamics. Earlier, President Donald Trump had placed several European nations in a precarious position by threatening tariffs in response to their opposition to his plan to acquire Greenland. However, he later shifted his stance after securing a preliminary agreement with NATO aimed at a potential future deal. Though the specifics of this agreement remain vague, market speculation suggests it may involve mineral rights and the establishment of missile systems. Adding to the uncertainty was a Danish pension fund's announcement of its decision to withdraw from US Treasury positions, raising concerns that Europe could leverage its extensive US holdings. Meanwhile, the Federal Reserve is anticipated to keep interest rates steady in its upcoming meeting. The dollar's depreciation was most notable against the euro and key antipodean currencies.