Dollar rises as Trump threatens tariffs on Canada and Mexico
The U.S. dollar has gained slightly, supported by former President Trump's announcement of a potential 25% tariff on Mexico and Canada. The Canadian dollar has fallen sharply in response, with USD/CAD approaching the 1.4100 level. The Japanese yen has also strengthened, with USD/JPY down 0.6% this week at 153.82. Market attention is on a possible Bank of Japan rate hike next month and lower U.S. Treasury yields. Traders are preparing for increased market volatility linked to Trump's tariff threats, reminiscent of his previous presidency. The UK will release its November retail sales data at 1100 GMT.