Month-end flows also likely a factor
The US dollar has kicked it into high gear ahead of today’s highly-anticipated PCE report. Core PCE is expected to rise to the highest since 1994.
Lately though, economists have been underestimating inflation so there’s a good chance of a surprise higher. That would push the dollar higher and it might be why we’re seeing some strong bids in the dollar int he past hour.
We’re also at month-end and flows have consistently been dollar-positive since Wednesday. We could be seeing more of that and will be watching especially closely into the 1500 GMT London fix.