USD weakens as Trump's Davos speech raises trade policy uncertainty

The US dollar has retreated across major pairs following President Trump's Davos address, with traders reassessing potential trade policy impacts. Trump's comments about doubling domestic steel production and securing Greenland have raised concerns about protectionist measures that could dampen dollar demand. His cryptic references to Venezuela and undisclosed military capabilities added to market uncertainty. The speech emphasized energy independence, trade reforms, and immigration policies without providing specific economic targets. Dollar index futures declined 0.4% in early European trading as investors digested the implications for international trade relations. Technical indicators suggest the greenback faces resistance at recent highs, with support emerging near the 50-day moving average. Traders are now closely monitoring any concrete policy announcements that could affect US trade balances and capital flows.