It isn't very much talked about in the context of broader markets this week but the latest weakening in the Chinese yuan is arguably one of the more significant developments in FX at the moment. The PBOC already teed up the move at the end of last week and whatever the case may be, it is a notable tailwind for the dollar to move higher.
The 6.90 level beckons next but it seems more likely that China may look to draw the line closer to the 7.00 mark. If so, there is still added scope for the yuan to fall further and that's never a good thing for risk trades but plenty good for the dollar at least.