EUR/USD eyes 1.0420 as Greenland tariffs, Japan elections weigh

EUR/USD traded defensively near 1.0420 as geopolitical uncertainties surrounding potential Greenland tariffs and Japan's snap election announcement created risk-off sentiment in currency markets. President Trump's renewed interest in Greenland has sparked concerns about transatlantic trade relations, potentially impacting EU-US commerce. Meanwhile, Japan's political instability following the snap election call has increased safe-haven demand for the dollar. The euro faces additional pressure from weak German industrial production data, down 1.5% month-on-month versus -0.5% expected. Technical indicators suggest EUR/USD is testing crucial support at 1.0400, with a break below potentially accelerating losses toward 1.0350. Resistance stands at 1.0450 (50-day moving average). Traders are positioning cautiously ahead of Thursday's ECB meeting minutes, which could provide insights into the central bank's policy trajectory amid persistent economic headwinds.