Strategist: Trump's nomination for Federal Reserve chairman has stabilized the US dollar, but risks still exist.

Macquarie Group strategist Thierry Wizman stated in a report that President Trump's decision to nominate a former Federal Reserve Board member, rather than an outsider, to lead the central bank has helped stabilize the US dollar. Traders may believe that Trump is signaling continuity with the Fed's institutional traditions by nominating Kevin Warsh as Fed Chair. However, Trump is "unlikely to deviate from his core beliefs," as he has pressured the Fed to lower interest rates. Warsh is a family friend of Trump's and has been advising the president on monetary policy since 2009. The strategist suggested that this means Warsh would act more quickly to lower interest rates when the time comes. The DXY US dollar index rose 0.4% to 96.667.