Jefferies: pace of Trump's policy implementation will dominate the dollar going forward

The U.S. dollar is off to a strong start, fuelled by the election of Donald Trump as U.S. president, but future moves will depend heavily on the pace of policy implementation, said Brad Bechtel, global head of FX at Jefferies Group. ‘Over time, I can see the potential for the dollar to continue to rise, but I don't think it will reprice immediately,’ Bechtel said. In Trump's first administration, he groped his way around Washington, and with more experience he could move tariffs and regulatory reforms more quickly. But that's no guarantee, and much still depends on whether Republicans can win the House of Representatives.Bechtel said, ‘We need to look at what will be a red wave from here on out: that's going to dictate how quickly the market moves to something broader.’