The yuan is firming up against the dollar as talks of more stimulus is to come
Talks of more stimulus and a stronger fix by the PBOC earlier this morning has so far been good enough catalysts for the yuan to strengthen against the dollar today. And that is adding to another reason for the greenback's weakness as we enter European trading.
A case of stretched positioning against some of the major gainers today isn't helping and with traders starting to turn their attention towards the US midterms, risks are starting to build in the dollar trade right now.
With near-term technical levels also set to break for key dollar pairs, it's looking more likely that the dollar will keep with the struggle ahead of the midterms next week.