ANZ: If Warsh is elected, he will be seen as someone who can protect "Fed independence," but some market volatility may just be position adjustments

Odaily According to Khoon Goh, Head of Asia Research at ANZ, I suspect that if Kevin Warsh's appointment is true, he would be seen as someone who can maintain a certain degree of independence, rather than someone who might succumb to Trump's will. What will be more interesting to watch is how the market ultimately reacts when Trump announces his choice. But another point is that the dollar has experienced significant volatility this week, so I think we shouldn't read too much into these FX moves, as it could just be position unwinding. Before the announcement, investors might simply be reducing their risk exposure. Furthermore, especially considering the timing on a Friday, if you think from the perspective of an investor or market participant: What happened on the first weekend of January? "The Venezuela crisis"; what happened on the second weekend? "The Greenland incident"; and now the situation in Iran also holds potential for change. Therefore, any rational market participant would not want to go into the weekend with large positions, so some of the moves might just be position reduction. (Jin10)