Nordvig on the Canary in the EM Coal Mine

The video discusses the weakening of emerging market (EM) currencies due to trade tensions and capital outflows. It highlights the impact of the Chinese currency's movement and the role of trade escalation as a catalyst. The analysis includes historical context and the unusual nature of current events. The video also examines bond yield changes and the People's Bank of China's (PBOC) currency fixing, providing insights into market expectations and future currency directions.

In what ways is the current situation of EM currencies different from past events?

What implications does the fixing of the yuan have for its future direction?