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Its worth reminding that the next SOMA........>

FOREX
FOREX: Its worth reminding that the next SOMA redemption day will take effect on
Wednesday Oct 31. This is where the Fed unwinds its balance sheet and redeems
the full amount paid for in bonds, normally resulting in USD demand. Nordea note
it will be a hefty one and will necessitate the second largest liquidity drain
ever, after the one at the end of July. They add, on the ten SOMA days since the
end of February, EURUSD has always been lower at CET1715 vs CET0800, by an
average of 0.25%, and odds are that the USD will perform nicely on Wednesday
too, unless offset by month-end rebalancing flows.

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