Danske Bank: After the nomination of Waller, the short-term risk of the dollar is biased upward

According to Jinshi News, Stefan Mellin of Danske Bank stated in a report that after Trump's nomination of Walsh as the Federal Reserve Chairman, the short-term risk balance has shifted in favor of a stronger dollar. This nomination seems to alleviate market concerns about the potential threat to the Federal Reserve's independence and has prompted a partial unwinding of the political risk premium in the dollar. He pointed out that the dollar's sell-off in late January was mainly due to the political risks arising from the unpredictability of U.S. policies, so the easing of short-term political uncertainty may create a tactical window for a dollar rebound.