Heads up: Month-end flows might factor into play in the day ahead

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Let's skip right to the chase. In case you missed the calls from last week:Month-end fixing to be mildly supportive of the dollar - BofASome slight dollar selling likely to be the case for this month-end - Credit AgricoleIt's a rare month that we see conflicting signals from banks, based on their respective month-end rebalancing models. However, it isn't the first and it surely won't be the last.So, what can we make of this? As mentioned in one of the linked posts:"It is best to remember that there is no exact science in deciphering or making sense of the impact of these rebalancing and fixing flows. I will always point out the notes from the banks when I can, but they are more of an elective signal. These are by no means hard and fast calls that point to what will exactly happen when we get to month-end trading and/or closer to the London fix during this period.For this month in particular, both Credit Agricole and BofA are arguing that month-end action is likely to be more mild. Thus, even with conflicting signals, they are merely suggesting that any impact from these flows are not likely to be as substantial. But again, there is no hard and fast rule to say that something will happen and that one of them might be right.At the end of the day, this is just one small element that makes up how price action behaves. It is just like how one would view the FX option expiries list. Overall dollar sentiment, technical considerations, and other fundamental factors in play are just as important to be wary of.The signal here is merely an additional tool to add to your back pocket, just in case you need more details to make an informed decision when executing trades at the end of the month. It's just that at the end of the day."Just keep that in mind as we approach the final day of August trading, with perhaps a better sense of actual market flows and sentiment starting from tomorrow. But then again, there won't be much time to get settled as we do have the US non-farm payrolls coming up on Friday. It's a tricky time with Fed odds for September now seemingly close to a coin flip after Jackson Hole. This article was written by Justin Low at investinglive.com.