Euro Strengthens Above $1.17

2026-01-20 10:46 By Joana Ferreira 1 min. read

The euro extended gains above $1.17, reaching its strongest level since January 6, as investors cheered stronger-than-expected German economic data while geopolitical tensions continued to weigh on the US dollar.

Germany’s ZEW Economic Sentiment Index jumped to 59.6 in January, its highest since July 2021 and well above forecasts of 50, signaling optimism for a 2026 economic turnaround despite uncertainties surrounding US trade policy.

Meanwhile, the dollar weakened following renewed tariff threats from US President Donald Trump, who warned of 10% tariffs on several European countries to pressure Denmark into selling Greenland to the US.

Trump suggested Europe would be unlikely to “push back too much” as global leaders gather in Davos, while the EU is considering broad retaliatory measures, including tariffs of up to €93 billion on US goods.



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