Fiscal Musings, Yuan Rally Weigh On The Greenback

Mild risk-on flows generated by the White House's rhetoric surrounding fiscal talks with the Democrats weighed on the greenback early on, before the yuan's post-holiday rally amplified pressure to the dollar, cementing its position as the worst G10 performer today. A stronger than expected PBoC fix prompted the DXY to dip under yesterday's low. The index last trades -13 pips at 93.48.

• DXY bears look for fall through Oct 6 low/50-DMA/50% retracement of the Sep 1 - 25 rally at 93.34/29/24. A clean break below these levels would open up 92.75, which represents the low of Sep 21. Conversely, a push above Oct 2 high of 94.03 would bring Sep 25 high of 94.74 into view.
• WTI trades ~$0.10 lower at typing, gold sits ~$12.90 better off.
• U.S. Pres Trump said that he is ready to resume rallies and wants to hold one on Saturday. The POTUS insisted that he is not contagious anymore without citing evidence, but his physician said in a memo that he could probably resume public activity this weekend.
• Elsewhere, Trump reiterated that he will not take part in a virtual debate with Joe Biden on Oct 15, while his campaign manager noted that the President will "do a rally instead".
• Wholesale inventories and comments from Fed's Barkin take focus in the U.S. today.