Why Canadian Imperial Bank Is Bearish the Dollar

The video discusses the current state of U.S. Treasury yields and the dollar's performance. Patrick Bennett from CIBC provides insights into the bearish outlook for the dollar due to rising inflation and interest rates. The discussion covers the impact of these factors on the bond market and the potential for a recoupling of the dollar with other currencies. Investment strategies are suggested, focusing on selling the dollar at specific levels, with an emphasis on the medium-term trend.

What is Patrick Bennett's view on the U.S. dollar in the medium term?

• Neutral due to stable economic conditions

• Uncertain due to fluctuating treasury yields

• Bearish due to better performance of other economies

• Bullish due to strong U.S. economic performance

How do rising treasury yields typically affect demand for bonds and currency?

• Increase demand for both

• Increase demand for bonds but decrease for currency

• Decrease demand for both

• Have no effect on demand

What is a major concern that could undermine assets, including currency?

• Inflation

• Deflation

• Decreasing treasury yields

• Stable interest rates

What does Patrick Bennett suggest regarding the dollar's short-term strength?

• Hold the dollar

• Ignore the market trends

• Buy into the strength

• Sell into the strength

At what level does Patrick Bennett recommend selling the dollar-yen?

• At 107 to 107.50

• Above 110

• Below 105

• At 108 to 108.50