Yellen's exit would be good news for the dollar

03.10.2017 / 21:32

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Just the idea that Janet Yellen is now more likely to be replaced by a more hawkish Fed chairman is bullish for the dollar.

Jens Nordvig, CEO of Exante Data, said the tide turned last week, when news emerged on who was interviewed by President Donald Trump for Fed chair. The two names were Kevin Warsh, a former Fed governor, and current Fed Governor Jerome Powell.

"The one thing to keep in mind, compared to Yellen, both of these candidates are more hawkish. She's been very cautious in what she's done. Both of these are names that would embrace higher rates a little quicker," said Nordvig. "

Besides the Fed factor, the tax reform process has also been a positive for the dollar.

But the Fed chair decision, which Trump said last week would be made in several weeks, could be a spark for the dollar. Nordvig said it would be positive for the greenback regardless of whether it's Warsh or Powell.

Source: Bloomberg Pro Terminal

Junior Trader Stefan Panteleev

Varchev Traders

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Yellen's exit would be good news for the dollar

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