Trump introduces new tariffs on Greenland

[Ben Graham]

Donald Trump remains the main newsmaker of 2026. Although the year has just begun and many have not yet finished their Olivier salad or champagne, the news flow is off the charts. News arrives almost every day. And the news is not local but global. As soon as Trump carried out a successful military operation to capture Venezuelan President Nicolas Maduro, belligerent statements toward Cuba, Mexico, Colombia, and other Latin American countries immediately began. Trump believes that in some of these countries it is necessary to save people who have long been under the yoke of criminal regimes. In some cases, governments should be brought to justice for failing to combat the production and distribution of drugs, much of which is directed to the United States.

However, many were surprised by Trump's desire to seize Greenland. Obviously, even the smallest patch of land on this planet can be of interest to someone or play a strategic role for a power. But many cannot fathom how this is possible: in the Age of Democracy and Law, Washington is voluntarily offering Denmark the handover of a huge island. And in case of refusal, threatens to seize it militarily.

Of course, there was a plausible pretext this time as well. In my reviews, I constantly draw readers' attention to the simple fact that Trump always seeks a plausible pretext to advance his designs, even though, in reality, the US president pursues completely different goals. This time, Trump believes that Denmark, together with the EU, cannot ensure the island's security and that over time it may be seized by Russia or China. Trump does not want that to happen and wants to ensure security in the region, so he thinks Denmark should cede the island to America.

The US president also found a second pretext for why Greenland should become American. According to him, America has subsidised Denmark for years, while Denmark has no rights to the island. "The Danes simply landed on the island one fine day" and considered it their own. Probably Donald Trump "forgot" that Christopher Columbus similarly landed on America's shores once. In any case, Trump believes Denmark should repay the US debt. And to motivate Copenhagen and other EU countries, the US president introduced 10% tariffs that will take effect from February 1 and may be increased to 25%. Tariffs will remain in force until Greenland is transferred to America.

Wave picture for EUR/USD:

Based on the analysis of EUR/USD, I conclude that the instrument continues to build an upward section of the trend. Trump's policy and the Fed's monetary policy remain significant factors in the long-term decline of the US dollar. The targets of the current trend section may extend up to the 25th figure. However, to reach those targets, the market must complete the construction of an extended wave 4. Right now, we see only the market's desire to continue that wave. Therefore, in the near term, a decline to the 15th figure can be expected.

Wave picture for GBP/USD:

The wave picture for GBP/USD has changed. The downward corrective structure a-b-c-d-e in C within wave 4 looks complete, as does wave 4 itself. If this is indeed the case, I expect the main trend section to resume with initial targets around the 38 and 40 figures.

In the short term, I expected wave 3 or c to form, with targets around 1.3280 and 1.3360, which correspond to 76.4% and 61.8% by Fibonacci. These targets have been reached. Wave 3 or C has presumably completed, so in the near term, a downward wave or a set of waves may form.

Main principles of my analysis:

1. Wave structures should be simple and understandable. Complex structures are difficult to trade and often change.
2. If there is no confidence about what is happening in the market, it is better not to enter it.
3. There is never and can never be one-hundred-percent certainty about the direction of movement. Do not forget protective Stop Loss orders.
4. Wave analysis can be combined with other types of analysis and trading strategies.

The material has been provided by InstaForex Company - www.instaforex.com