Trump's Greenland "total access" deal and tariff pullback couldn't save the dollar from another day of pressure.

Another flip-flop in policy by Trump has returned the TACO trade to the market lexicon, with SEB stating that "sell America" has once again become a frequently used market expression. SEB state that the pattern is reminiscent of last spring around Liberation Day, when both US equities and government bonds were sold off and the Dollar weakened broadly.

It was a busy day in Davos, with Ukrainian President Zelenskiy saying he held a productive meeting with Trump, discussing peace talks and air defences.

Zelenskiy took aim at Europe's response to the Greenland spat with the US, saying that the continent needed to show more courage, before describing it as a "fragmented kaleidoscope" of small and middle powers.

After this morning's impressive Australian employment report raised expectations for a early RBA hike in February, Aud/Usd gains continued up to 0.6826, its highest level since early October 2024.

US weekly jobless claims continued to miss to the downside.

The latest figure for the w/e January 17th, came in at 200k, below the 209k forecast, while the previous figure was revised up to 199k. The four week moving average slipped again to 201.5k, its lowest reading since January 2024. The data showed that the US labor market is still in its low hire, low fire phase.

In other data, the rather historical Q3 GDP print was revised up to 4.4% from 4.3% previously.

Analysts got their forecasts for the US November PCE Price report spot on, with the headline and the core print remaining at the 2.8% y/y level seen in the September numbers.

Elsewhere, personal income came in slightly lower than expected at 0.3% m/m, while real personal spending came in at 0.3%, matching estimates.