FX Weekly Recap: January 19 – 23, 2026

Foreign money markets whipsawed by means of every week dominated by President Trump’s dramatic Greenland gambit, which sparked a “Promote America” wave earlier than his midweek about-face triggered sharp reversals throughout the board. The motion kicked off with Trump’s weekend threats to slap 10% tariffs on eight NATO allies opposing his Greenland bid, sending the greenback tumbling and secure havens hovering as merchants questioned Washington’s dedication to its allies.

The pivot got here throughout Trump’s Davos look, the place he dominated out army power and introduced a framework deal, successfully canceling the threatened levies. That de-escalation sparked highly effective threat rallies that flipped the week’s script, with commodity currencies and threat belongings surging whereas defensive performs retreated.

In opposition to this risky backdrop, home catalysts proved decisive for particular person foreign money efficiency. Australia’s blockbuster employment report and surging PMIs propelled the Aussie to second place for the week, whereas New Zealand’s financial stabilization indicators drove the kiwi to the highest spot. The greenback emerged because the week’s worst performer, posting its steepest weekly decline since June as geopolitical whiplash outweighed in any other case stable US financial fundamentals.