In retaliation, the EU looks set to void the US-EU trade truce deal agreed last year, as France plans to push the EU to activate its most powerful trade retaliation tool, the anti-coercion instrument, to be used for the first time against the US.
All in all, EU officials have aimed to introduce more retaliatory measures, such as new taxes on tech companies or targeted curbs on investments in the EU, beyond the earlier suspended tariffs on 93 billion euros of US products, to counter the US’s pressure on Greenland.
To add fuel to the fire, key US White House officials have continued to back Trump, with the US Treasury Secretary Bessent reiterated that the US will not back down on taking over Greenland, citing that the EU is too weak to ensure its security.
The first reaction is a risk-off sentiment in today’s Asia session at the start of a brand-new trading week, where major Asia Pacific stock markets traded lower, including Japan’s Nikkei 225, and Hong Kong’s Hang Seng Index slipped by 0.6% and 1% in line with the intraday losses of 1% to 1.3% seen on the S&P 500 and Nasdaq 100 E-mini futures at the time of writing.
The US dollar does not benefit from this current episode of risk-off as the “debasement trade” narrative takes hold due to the latest US foreign policy towards its European allies, as traders shifted demand towards safe-haven precious metals. The US Dollar Index dropped by -0.2% intraday, while gold and silver rocketed by 1.6% and 3.5% respectively to hit fresh record highs.
Here are five intraday (hourly) technical setups on key cross-assets (Nasdaq 100, Hang Seng Index, Germany DAX, Gold & Silver) to watch as the trading session unfolds today in the aftermath of the US trade tariffs threat towards the EU.
