US Dollar chokeholds markets after Trump hits neighbouring countries with surprise tariffs

The US Dollar rolls through markets after President-elect Trump announced more tariff measures. Markets are choking on the announcement, with equities recovering earlier losses. The US Dollar Index whipsaws around 107.00, with the Canadian Dollar, Mexican Peso and Chinese Yuan as main losers against the Greenback.The US Dollar (USD) rolls through markets on Tuesday after President-elect Donald Trump communicated on his social media channel that his government will issue an additional 25% tariff on imports from Canada and Mexico, with an additional 10% to the 60% already announced during his election campaign on Chinese goods. Markets are not doing well with this communication, as equities are printing red numbers across the board and the globe while US bond prices are dropping (yields are soaring). 

The US economic calendar will show some housing data on Tuesday. With the Housing Price Index for September and the New Home Sales data for October, markets will be able to see if the housing market in the US is cooling down as the last piece that was driving inflation. At the end of the day, the Federal Reserve (Fed) publishes the Minutes of its November 7 meeting.