Yuan Claws Back Some of Its Losses

The video discusses the yuan's potential to remain range-bound, with a 52% chance of reaching 7 per dollar in the next quarter. It highlights market stress indicators, such as the flattening risk reversal curve. The yuan's impact on global markets, particularly its correlation with the Canadian dollar, is examined. The video suggests hedging opportunities using Canadian dollar volatility, as it is currently low, making it an attractive option for managing trade risks.

What opportunity does the current volatility environment present for hedging?

Why is it considered attractive to buy volatility in the current market conditions?