Danske Bank: Wosh's Nomination Leads to Short-term Upside Risk for the US Dollar

ChainCatcher reports that, according to Jinjishi, Stefan Mellin from Danske Bank stated in a report that following Trump’s nomination of WASH as Federal Reserve Chair, the short-term risk balance has shifted in favor of a stronger dollar. The nomination appears to have alleviated market concerns about the potential threat to the Fed’s independence and has prompted some political risk premiums in the dollar to unwind. He pointed out that the dollar’s sell-off in late January was mainly driven by political risks associated with U.S. policy unpredictability, so the easing of short-term political uncertainties could create a tactical window for a dollar rebound.