Institutional Analysis: Trump's Dismissal of Powell Could Cause the Dollar Index to Drop by 5%

ChainCatcher news, according to Jinshi Data, InTouch Capital Markets market strategist Sean Callow stated that any move by the Trump administration to dismiss Federal Reserve Chairman Powell could severely impact the dollar.

Such a move could lower short-term yields due to market expectations of appointing a more dovish chairman, while increasing the risk and inflation premium of long-term U.S. Treasuries. There is currently no historical data available to assess the forex market's reaction, but he added that in the long run, the dollar index DXY could easily drop by more than 5%.