Dollar to Stay Stronger for Longer, CIBC's Bennett Says

The transcript discusses market trends, focusing on liquidity and the strength of the dollar against the yuan amidst trade concerns. It explains the preference for forward points over the spot market due to currency risk management strategies. The analysis includes currency pairs like the dollar against India and the euro against the yen, highlighting deficits and market stability. The impact of Brexit on currency stability is examined, noting the uncertainty it brings. Finally, the transcript speculates on the timing of ECB rate hikes, considering the risks in Europe.

What is one reason for preferring forward points over the spot market?

• Counter-cyclical factors affecting spot movements

• Higher liquidity in the spot market

• Lower transaction costs in the spot market

• Greater volatility in forward points

What method did PSC and SAFE use to manage currency movements?

• Enhancing foreign investments

• Increasing interest rates

• Implementing reserve requirements

• Reducing trade tariffs

Which currency pair is mentioned as being underpriced in terms of forward points?

• Dollar against the Euro

• Dollar against the Indian Rupee

• Pound against the Dollar

• Euro against the Yen

How has Brexit uncertainty affected the euro and sterling?

• Decreased the euro's value significantly

• Increased the value of sterling

• Stabilized the euro against the sterling

• Made the euro more volatile

When is the ECB expected to consider rate hikes according to the discussion?

• In 18 months

• In 12 months

• In 24 months

• In 6 months