The euro continued its gains above $1.17, hitting its highest level since January 6, as investors welcomed better-than-expected German economic data, while geopolitical tensions continued to weigh on the US dollar.
Germany's ZEW investor confidence index jumped to 59.6 points in January, its highest level since July 2021, exceeding expectations of 50 points. This reflects optimism about an economic recovery by 2026 despite the uncertainty surrounding US trade policy. Meanwhile, the dollar weakened after US President Donald Trump renewed his threats to impose 10% tariffs on several European countries to pressure Denmark into selling Greenland to the United States.