The EUR/NOK currency pair bounced off a fresh 2-month low of 11.6774 on Monday, as the single currency was supported by a coordinated EU effort to counter US trade measures.
US President Donald Trump said over the weekend that the US would implement a wave of increasing tariffs on European allies until it is allowed to acquire Greenland.
He said the US would impose a 10% tariff on imports from several EU countries that oppose the Greenland proposal.
Bloomberg reported that the tariff would cover exports from Denmark, Sweden, France, Germany, the Netherlands, Finland, Britain, and Norway. The duty would take effect on February 1st and remain in place until the US can buy Greenland.
EU ambassadors agreed on Sunday to bolster efforts to dissuade Trump from imposing the tariff. But, in case the levy was imposed, the EU would respond with retaliatory measures, European Union diplomats said.
Meanwhile, traders’ focus will now set on central bank remarks at the World Economic Forum in Davos, starting Tuesday. Policy makers from major central banks will participate, while their comments could shift risk sentiment.
The EUR/NOK currency pair was up 0.18% on the day to trade at 11.7247.
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