Investors sell dollar, seek safety as Trump threatens Greenland tariffs

Jan 19 (Reuters) - Investors headed for harmless havens portion Europe prepared to propulsion backmost connected Monday aft U.S President Donald Trump threatened escalating tariffs connected allies successful the mode of his ambition to bargain ​the Danish arctic territory of Greenland.

Trump said further 10% tariffs would instrumentality effect connected February 1 connected goods ‌from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and Great Britain, rising to 25% connected June 1 unless immoderate benignant of Greenland woody is ‌struck.

Precious metals and bonds rallied, stocks were down and the dollar little successful effect successful Asia trade. The euro, yen and Swiss franc were each higher. [MKTS/GLOB]

Here are expert and capitalist comments connected Trump's threatened tariffs:

KHOON GOH, HEAD OF ASIA RESEARCH, ANZ, SINGAPORE

"Typically you would deliberation tariffs being threatened would pb to a weaker euro, but ... the interaction successful FX markets really has been much ⁠towards dollar weakness each clip determination is ‌heightened argumentation uncertainty emanating from the U.S.

"I deliberation markets are pricing successful accrued governmental hazard premia connected the U.S. dollar.

"The large question present is however overmuch and however hard does Europe propulsion ‍back against President Trump implicit this issue. For now, it looks similar the U.S.-EU commercialized woody is astir apt not going to beryllium successful spot and the U.S.-UK commercialized statement arsenic good is present up successful the air."

VISHNU VARATHAN, HEAD OF MACRO RESEARCH, ASIA EX-JAPAN, MIZUHO, ​SINGAPORE

"It throws the alleged agreements retired of the model now...(and) that reassessment is astir apt triggering immoderate hazard repricing.

"Markets actively person ‌to reassess precise cardinal assumptions astir euro/dollar, which has got a immense interaction connected your dollar assumptions, peculiar betterment stories successful Europe, fixed the latest information led america to judge Germany had conscionable turned a corner.

"(Trump) is inactive consenting to usage tariffs with wantonness and making threats and belittling partners. So we're not implicit the phase."

CHARU CHANANA, CHIEF INVESTMENT STRATEGIST, SAXO, SINGAPORE

"Markets person learned that tariff threats get watered down oregon delayed, truthful the archetypal absorption tends to beryllium cautious alternatively ⁠than panic. But linking tariffs to geopolitics feels little similar commercialized bargaining ​and the uncomfortable information for markets is that it raises the likelihood ​of tariffs becoming a instrumentality for non-trade disputes. This is harder to price, and perchance demands a stickier hazard premium.

"Even without large tariff hikes, uncertainty tin marque companies hold capex and supply-chain decisions, ‍which could beryllium a slower-burn ⁠drag connected growth. If we get steadfast dates, assemblage targets, oregon EU retaliation, volatility tin broaden."