Is the US dollar under pressure and the euro facing increased risks? How will geopolitical tensions in 2026 shake up the financial markets?

【CryptoWorld】Recently, the market has been digesting an important signal: the Trump administration’s potential move to impose tariffs on European countries over the Greenland issue, which directly impacts the expectations for the US dollar’s movement.

Analyst David Forrest from Faron Credit pointed out that this wave of tariff threats has reignited the market’s “sell the dollar” sentiment. But there is a twist—so-called “TACO trades” (Trump retreating at the last minute) are also worth noting, as tariffs are very likely just a bargaining chip used by Trump in negotiations. If he actually retreats, the dollar could gain some support.

Looking ahead, the time window around 2026 warrants special attention. As geopolitical risks during Trump’s term intensify, the euro may become one of the losers. The implementation of tariffs will add to the cyclical pressures already present in the Eurozone economy and will also weaken Europe’s influence over Russia regarding Ukraine. All these signals suggest that the interplay between exchange rate patterns and geopolitical factors will bring new uncertainties to asset allocation.