DAX Rebounds as Trump Backs Down Over Greenland and Tariffs

The , along with its European peers, has rebounded on Thursday after President Trump abandoned tariff threats linked to Greenland and also ruled out using force to take the territory.

Trump announced that he had withdrawn tariff threats after a meeting with NATO Secretary General Mark Rutte, during which they reached a framework for a deal on Greenland’s future.

While details are few and far between, reports suggest the framework may involve mineral rights and the golden dome, Trump’s most ambitious missile defence plan yet. Greenland is home to a large amount of rare earth elements, many of which are crucial to technologies such as mobile phones and EVs.

NATO Secretary General said there was no discussion over the key issue of Danish sovereignty over Greenland

Trump’s comments have been enough to boost risk sentiment, calming fears of a potential trade war.

Those sectors which had been badly beaten in recent days are rebounding, with German automakers leading the charge higher.

With the TACO (Trump Always Chickens Out) trade in full swing, attention is also turning to financial updates. Volkswagen Europe’s largest carmaker is up 4.3% after posting better-than-expected net cash flow for 2025.

Attention will also be on U.S. data later today, including , the Fed’s preferred gauge for inflation, for October and November, although this may seem like old news now, as well as Q3 .

DAX Forecast – Technical Analysis

The DAX rebounded lower from its record high of 25,500 to a low of 24,350, although crucially closed above the 24,700 support level and the July and October highs, keeping the uptrend intact.

Buyers, encouraged by recovering momentum, will look to extend gains towards the 25,000 round number and 25,500 to fresh record highs.

Sellers would need to break meaningfully below the 24,700 level to negate the near-term uptrend. Below here, the 50 SMA and 200 SMA come into play at 24,275 and 23,930, also the mid-December low.

USD/JPY Rebounds as the “Sell America” Trade Unwinds

is rising as the holds onto yesterday’s gains after Trump backpedalled on trade tariffs and on Greenland, announcing a framework for a deal. As a result, investors unwound the “Sell America” trade, and risk sentiment has returned. 

In the absence of further updates regarding Greenland, attention will turn to US data and central banks. The US core PCE for October and November, the Fed’s preferred inflation gauge, will be released, helping to clear some of the haze left by the US government shutdown at the end of last year. US GDP for Q3, as well as jobless claims, will also be watched for clues over the Fed’s next move.

The market is pricing in two by the Fed this year.

The yen is weakening and remains in intervention territory at these levels. However, Japanese long-dated government bonds are extending gains on Thursday after a steep sell-off at the start of the week. Expectations are rising that the finance ministry could take some measures to contain further rises in yields.

Attention is turning to the Bank of Japan’s rate decision early on Friday. The central bank is expected to leave rates unchanged at 0.75% after raising them to the highest level since 1995 in the December meeting.

Attention will be on the extent to which BoJ governor Ueda provides hawkish signals at a time when the yen is on the brink of a key level versus the dollar at 160. This is the level considered a rough line in the sand, where authorities step in for multiple rounds of intervention, as in 2024.

The BoJ will be paying closer attention to the impact of the currency on inflation, as further weakening could accelerate the pace of future rate hikes.

USD/JPY Forecast – Technical Analysis

USD/JPY eased lower from its 18-month high of 159.45, finding support on its multi-month rising trendline and recovering higher. The uptrend remains intact. The RSI supports further gains as long as it remains out of overbought territory.

Buyers will look to rise above 159.45 to create a higher high towards 160.00 and 162.00, the 2024 high.

Support is seen around 157.75, the November high and weekly low.  A break below here and the 50 SMA at 156.50 opens the door to 145.50, the December low.

Original Post

Natural gas price activated with the US data positively, to rally above the broken bullish channel’s support initially at $4.050 level, to settle above it and to open the way for today’s trading with strong positivity by its rally directly to $5.490.

The price might form corrective trading to attempt to gather some gains, but its stability above $4.750 level supports the continuation of the positivity, to expect resuming the bullish attack to reach $5.770, then press on the bullish channel’s resistance at $5.960.

The expected trading range for today is between $5.100 and $5.770

Trend forecast: Bullish

Copper price approached the initial corrective target yesterday at $5.6500, to confirm delaying the attempts to resume the bullish trend due to its stability at $5.9700, besides providing negative momentum by its continued leaning below 80 level as appears in the above image.

Therefore, we will keep preferring the temporary negative attempts, which might target $5.6200 and $5.5100, while regaining the bullish trend requires a positive close above the mentioned barrier, to reinforce the chances of recording new historical gains that might begin at $5.6200 and $5.8500.

The expected trading range for today is between $5.6200 and $5.8500

Trend forecast: Bearish

– Written by


Frank Davies

STORY LINK Pound Sterling to Dollar Forecast: Is the Calm Temporary?

The Pound to Dollar exchange rate (GBP/USD) regained some composure after renewed equity market losses briefly dragged the pair back to key support levels.

GBP/USD Forecast: Recovery from Test of 1.34 Support

After a calmer start, there were fresh losses in equities which hampered the Pound with the Pound to Dollar (GBP/USD) exchange rate dipping to re-test the 1.3400 level before a recovery to 1.3430 as the dollar lost ground.

According to UoB, there is scope for gains to 1.3505, but added; “On the downside, a breach of 1.3380 could indicate that GBP is likely to range-trade instead of trading with an upward bias.”

HSBC has an end-year GBP/USD forecast of 1.35.

There was no major impact from the latest UK inflation data with geo-political developments dominating domestic and global markets. Events in Davos will continue to be monitored very closely.

Macquarie Group global forex and rates strategist Thierry Wizman commented; “The next step in the ‘Greenland or Bust’ saga is to see whether a common ground, such as NATO joint administration of Greenland, can be reached, starting at Davos this week.”

He added; “Until that happens the so-called primacy of the U.S. remains at risk of further dissolution, and with it an upending of the geopolitical alignments that have upheld markets in recent years.”

As far as financial markets are concerned, the developments in bond markets will be a key element.

Upward pressure on bond yields unsettled the dollar on Tuesday and had a knock-on effect on the Pound as UK bond yields also moved higher.

According to ING; “Greenland will be the dominant theme today and there may be scope for de-escalation, offering the dollar some support. Trump is meeting EU leaders in Davos today, and if the past year has shown anything, it’s that face‑to‑face engagement tends to provide the best opportunity for tensions with the US president to ease.”

MUFG noted; “The news yesterday that the Danish pension fund Akademikerpension was exiting the US Treasury market certainly added to the speculation of further foreign investor selling.”

It notes that this is not a sum which would destabilise the markets.

Nevertheless, it added; “But another announcement like the Danish one can certainly reinforce the negative momentum and feed the speculation of a broader sell-off of US assets. Investors sense that the taking of Greenland could be a step too far and warrants a more serious flight of capital from the US than what took place in April last year. The selling then was fleeting.”

Rabobank commented on the potential lack of alternatives; “The question remains, however; if we see mass dumping from European institutions, where do the dollars go?”

Domestically, the headline UK inflation rate increased to 3.4% from 3.2% and marginally above consensus forecasts of 3.3% with the core rate held at 3.2%.

Markets continued to price in around a 20% chance of a Bank of England rate cut at the March meeting.

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Created on January 22, 2026

The market has clearly spoken that it does not like the rising interest rates in Japan, as traders continue to punish the bond markets in Tokyo.

The US dollar has gone back and forth against the Japanese yen during trading on Wednesday as we continue to see a lot of choppiness right around this 158 yen level. It does make a certain amount of sense because we have the Bank of Japan interest rate decision happening on Friday, and that obviously will have a lot to do with where we go next.

While a cut or a hike isn’t necessarily expected, what people will be watching is the statement and the press conference. The Japanese are painted into a corner as they offer 75 basis points interest, but quite frankly, their bond market is starting to get out of control, and a lot of that comes down to the debt.

The market has clearly spoken that it does not like the interest rates rising in Japan and therefore continues to punish Japan via its bond market. If the central bank starts to talk about quantitative easing again, that probably helps the bond market but crushes the yen.

Interest Rate Differential

The interest rate differential, even after the Fed cuts a total of 50 basis points this year as expected, is still wide enough to drive a truck through, and therefore, you get paid at the end of every day to hold this currency pair. I think that continues to be one of the main drivers.

The 50-day EMA is down at the 156.11 level, and I think it is going to continue to offer a bit of a floor in the market. I like buying dips. I’ve been hanging on to this one for a while, adding occasionally, and building up a sizeable position that pays me at the end of every day. That’s how I think this continues. 160 yen will be the next target.

Want to trade our USD/JPY forex analysis and predictions? Here’s a list of forex brokers in Japan to check out.

Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.