There may be a bit of a rush for USD liquidity into month end. Otherwise the latest move in the dollar is tough to explain.
Notably, stocks are off their best levels so many that’s a canary in the coalmine?
In any case, the dollar is now roughly flat on the day against the yen, pound, loonie and Swiss franc while the euro holds onto some modest gains and the Aussie and kiwi outperform.
In terms of economic data, the UMich sentiment was a tad stronger but the final version of that report is rarely a market mover. Earlier, the PCE report was a touch soft on inflation so, if anything, that should be hurting the dollar.
Again, it’s quarter end and flows dominate fundamentals at this time of the month.
