Renewed US tariff threats over Greenland are unwelcome news for European industry, coming just as sentiment was beginning to recover from last year’s volatility. EUR/USD finds support near 1.1600, with intraday resistance at 1.1650 and elevated volatility reflecting market uncertainty over trade developments, ING's FX analyst Chris Turner notes.

EUR/USD holds above 1.1600 amid market uncertainty

"The flare-up over Greenland and the threat of renewed tariffs are very unwelcome for European industry. This comes at a time when industrial sentiment has finally started to rise, with businesses seemingly having learnt to live with last year's tariff volatility."

"These developments will focus European minds on the need to generate domestic demand and potentially even push through sluggish reforms such as the Savings and Investment Union, to allow Europe's capital markets to better compete with those of the US."

"EUR/USD has found support under 1.1600. Key intraday resistance is seen at 1.1650, above which 1.1690/1700 is possible. One-week and one-month EUR/USD traded volatility have been marked as a little higher, which is understandable given this week's uncertainty."