Demand for EUR/USD for month-end rebalancing is seen leading up the 14:00 15:00 GMT fixing.
The demand must e fairly robust as Spanish 10 year yields begin to explode. Yields have blown out 16 bp to 6.80, most of the move since the German finance ministry threw cold water on talk of a banking license for the European Stability Mechanism.
It will be interesting to see if EUR/USD loses its bid after the fixing. If it does not, then the market may be caught short and vulnerable to a squeeze.