Market Highlight 21.01.2026

The USD posted its sharpest one-day decline in more than a month on Tuesday (-0,5%), after President D. Trump’s threats toward Europe over Greenland weighed on equity markets and U.S Treasuries, while supporting gains in the EUR and GBP. A similarly volatile move in the USD followed the “Liberation Day” reciprocal-tariff announcement in April 2025, when U.S equities, Treasuries and the USD all fell in tandem. Markets are once again selling USD assets under a “Sell America” narrative, amid concerns that prolonged instability, rising strains within traditional alliances driven by eroding confidence in U.S leadership, the risk of tariff retaliation, and an accelerating shift toward de-dollarisation could persist. The S&P 500 and the Nasdaq Composite slid to their lowest levels in a month on Tuesday, as investors reacted negatively to fresh tariff threats.

In 2025, President D. Trump succeeded in imposing tariffs on multiple trading partners without triggering a broader trade war, as his objectives were to narrow the U.S trade deficit, boost exports, bring manufacturing back onshore, and raise revenue. Other countries refrained from retaliatory measures for fear of escalating a global trade conflict. However, amid the Greenland territorial tensions, European countries appear less inclined to step back in the face of U.S threats, even though a 10% tariff is estimated to shave 0,1% to 0,2% off GDP in the eight affected countries.

The USD/VND interbank exchange rate traded mostly around 26.265 yesterday. A stable tone is expected to persist today, with the market likely to remain within the 26.250 - 26.300 range.

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