Important to note touted month-end dollar flow as EUR/USD edges back towards pivotal level

The earlier rebound in the EUR/USD delivered by the higher than forecast EU HICP data has not seen the Euro back off at all yet. It is still grinding its way back towards the noted pivotal level, at 1.0850. It would not come as much of a surprise, if the EUR/USD was trading around that pivotal level when the US PCE report hits the screens, at 12.30pm GMT. Now ahead of that we have a number of investment banking reports citing quite strong dollar outflow for the month-end. Of course we can never entirely take those as accurate, but the reader is nevertheless alerted to what is out there in terms of perceived month-end dollar flow. That is because this is the last trading day of the month and that does give rise to potential last minute fixing orders, particularly set for the 4pm London FX fix. Now of course the impact of the PCE data could easily eclipse all that, assuming such exists in the first place. The EUR/USD is just now trading at 1.0848