USD weakens as Trump softens Greenland stance, easing geopolitical tensions

The US dollar has retreated 0.2% across major pairs following reports that President Trump acknowledged receiving 'bad information' regarding Greenland troop movements, signaling potential de-escalation in US-Europe tensions. EUR/USD gained 25 pips to 1.0875, while GBP/USD advanced to 1.2340 as risk sentiment improved. The diplomatic softening comes after initial concerns about deteriorating transatlantic relations had supported safe-haven dollar flows. UK officials interpret Trump's concession as opening dialogue channels, though core strategic disagreements remain unresolved. Markets are reassessing the probability of sustained geopolitical friction affecting trade and defense cooperation. Technical indicators show EUR/USD approaching resistance at 1.0900, with support established at 1.0850. The reduced geopolitical risk premium could weaken dollar demand in the near term, particularly if European markets continue to stabilize.