# EUR/USD rallies as escalating US-EU tensions crush the Dollar

> EUR/USD rallied above 1% in two days as Trump threatened 10% tariffs on European countries opposing his Greenland plans, while German and euro-area ZEW sentiment beat expectations. European leaders met in Brussels to discuss retaliation.

- Date: 2026-01-20 · published 2026-01-20T12:00:00.000Z
- Category: geopolitics · region US · magnitude medium
- Page: https://feedsoft.ai/events/7344-eur-usd-rallies-as-escalating-us-eu-tensions-crush-the-dollar
- Commodities: [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Escalating transatlantic trade threats weaken the dollar and raise the risk of retaliatory tariffs on U.S. farm goods, which could hit U.S. export demand for feed grains and soybean products. Currency moves also change import costs for European feed buyers.

## Read by commodity

- DXY: bearish ▼
- EURUSD: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| EURUSD | 2026-01-20 | 1 | +1.2% | 4.3 | US-EU tariff tensions over Greenland pressured the dollar while a strong ZEW print supported the euro, matching the move's timing and direction. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| EURUSD | 2026-01-22 | [EUR/USD rallies above 1.1740 as easing trade tensions weaken Dollar](https://feedsoft.ai/events/7347-eur-usd-rallies-above-1-1740-as-easing-trade-tensions-weaken-dollar.md) | +2.0% | +0.5% |
| EURUSD | 2022-03-10 | [Sterling Vulnerable, Pound To Dollar Rate Lifeline As Global Equities Surge](https://feedsoft.ai/events/9530-sterling-vulnerable-pound-to-dollar-rate-lifeline-as-global-equities-surge.md) | -0.7% | -1.4% |
| EURUSD | 2017-04-25 | [Continued Macron relief rally helps boost EUR USD to extended 5 month high](https://feedsoft.ai/events/9730-continued-macron-relief-rally-helps-boost-eur-usd-to-extended-5-month-high.md) | +0.6% | +3.6% |
| EURUSD | 2022-02-22 | [Dollar dips in choppy trade as investors weigh Ukraine scenarios \| Reuters](https://feedsoft.ai/events/9836-dollar-dips-in-choppy-trade-as-investors-weigh-ukraine-scenarios-reuters.md) | -0.9% | -2.5% |
| EURUSD | 2026-01-20 | [Dollar lower as investors reignite 'Sell America' trade \| Reuters](https://feedsoft.ai/events/7342-dollar-lower-as-investors-reignite-sell-america-trade-reuters.md) | +2.5% | +2.0% |
| DXY | 2026-01-22 | [EUR/USD rallies above 1.1740 as easing trade tensions weaken Dollar](https://feedsoft.ai/events/7347-eur-usd-rallies-above-1-1740-as-easing-trade-tensions-weaken-dollar.md) | -1.5% | -0.9% |
| DXY | 2022-03-30 | [Asia Session: 'Reduced' Russia Operations Sparks Relief Rally; Dollar Falls \| Investing.com](https://feedsoft.ai/events/42514-asia-session-reduced-russia-operations-sparks-relief-rally-dollar-falls.md) | +0.1% | +2.9% |
| DXY | 2026-04-08 | [USD: Dollar Falls as US-Iran Ceasefire Reduces Demand for Haven Currencies - Bloomberg](https://feedsoft.ai/events/11157-usd-dollar-falls-as-us-iran-ceasefire-reduces-demand-for-haven-currencies.md) | -1.6% | -1.4% |

## Sources

- fxstreet.com: https://www.fxstreet.com/news/eur-usd-rallies-further-as-the-eu-us-trade-rift-crushes-the-us-dollar-202601200834

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.