US PCE report will be important for the dollar this afternoon- EUR/USD in focus

Since an earlier update noted the lack reaction in the EUR/USD to the really poor German sales data, it actually rose back above 1.0410. Perhaps it was the noted lack of a downside reaction to the data which helped the modest move higher. Well, it has fallen back now and rightly so. Of course given where we are in the calendar, that move could have been due to a month end order. There might be more of those to come today, given the potential for some last minute month-end fixing orders. Very shortly we will get the latest German unemployment numbers noted earlier. That data will be released shortly, at 8.55am GMT. Also and even more importantly, at 1.30pm GMT we get the US December PCE (Personal Consumption Expenditure) data. That is expected to show core prices remaining at an annualised rate of 2.8%. There will be more to add on that later ahead of the release. Meantime, the EUR/USD is back down again, currently trading at 1.0388