EUR/USD steps back as the dust settles

The fall in the dollar resultant from the lower August PCE data was instant, as we noted at the trime, when mentioning the GBP/USD had finally managed to trade above the 1.33 handle. Understandably, the EUR/USD rose abruptly as well, trading to a session high, at 1.1380. 

However, it has since stepped back from that high and traded underneath 1.1360 a moment ago. The price action is relatively fluid for a change, if still constrained, as has been the case for a long while now. As to whether we have seen the top of the shop now today remains to be seen, but given the US data and what it really means and how those US bond yields remain elevated, despite all the recent noise surrounding that US data, we remain cautious as to whether there is more gas in the tank on the EUR/USD. 

Perhaps the one caveat to that could be the possibility of more Euro buying orders set for the final 4pm London fix of the month. The EUR/USD is currently trading at 1.1361