US Yields Likely Have Higher to Climb: 3-Minutes MLIV

• Mark Cudmore believes the recent strengthening of the Japanese Yen is unsustainable in the long term, presenting opportunities for re-implementing carry trades.
• The US dollar's muted reaction to strong payrolls data is attributed to a structural overexposure to the dollar and an ongoing multi-year downtrend.
• Concerns about AI's impact on jobs and real estate are acknowledged, with a prediction of a potential equity shock in the coming weeks, though AI's job displacement is expected to be slower than some timelines suggest.

The discussion focuses on the Japanese Yen's recent strengthening post-election, the US dollar's muted reaction to strong payrolls data, and the broader market implications of AI and real estate concerns. Mark Cudmore expresses skepticism about the Yen's sustained strength and anticipates continued dollar weakness over the long term, while also foreseeing a potential equity shock.