Bloomberg Surveillance Dollar Steadies as Greenland Tensions Ease
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Jan 22, 2026 Wendy Schiller, a political science professor at Brown University, shares insights on the current U.S. diplomatic stance, emphasizing economic leverage over traditional treaty methods. She also discusses how domestic politics are shifting focus away from foreign policy. Meanwhile, Jane Foley, head of FX strategy at Rabobank, analyzes the dollar's variable status, noting skepticism around the yen and arguing for the dollar's potential stability due to U.S. equity strength and global corporate investments.
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Dollar Confidence Is Eroding Slowly
- The dollar's weakness is a long-term, slow erosion of confidence, not a one-day reaction to headlines.
- Rebecca Patterson says this process will play out over years as foreign holders diversify away from treasuries.
Gold Reflects Central Bank Diversification
- Central banks are steadily buying gold as part of diversification away from U.S. assets.
- Patterson and surveys from World Gold Council show ongoing central bank demand supporting gold prices.
Diversify, Don't Go To Cash
- Don't flee markets entirely; treasuries still diversify but may be less reliable than decades past.
- Rebecca Patterson advises tactical margin shifts and broader asset and geographic diversification instead of going to cash.