EUR: Greenland’s tariff warnings put strain on European manufacturers – ING

US Tariff Concerns Resurface, Impacting European Industry

Fresh warnings from the US regarding potential tariffs related to Greenland have unsettled European manufacturers, just as confidence was beginning to rebound after last year's market turbulence. According to Chris Turner, FX strategist at ING, the EUR/USD currency pair is currently supported near the 1.1600 level, with short-term resistance at 1.1650. Heightened volatility in the market reflects ongoing uncertainty around trade policy shifts.

EUR/USD Remains Above 1.1600 Amid Ongoing Trade Tensions

The renewed dispute over Greenland and the possibility of additional tariffs are causing fresh concerns for European businesses. This situation arises just as industrial confidence was beginning to improve, with many companies having adapted to the unpredictable tariff environment of the previous year.

These latest challenges are likely to prompt European policymakers to focus more on stimulating internal demand and may even accelerate long-discussed reforms, such as advancing the Savings and Investment Union. Such changes could help strengthen Europe's capital markets and enhance their competitiveness with the US.

Currently, the EUR/USD pair is holding steady just below 1.1600. Immediate resistance is noted at 1.1650, and a move above this level could open the way toward 1.1690 or even 1.1700. Both one-week and one-month volatility measures for EUR/USD have edged higher, which is understandable given the heightened uncertainty this week.