Nordea have outlined 3 supportive factors....>

DOLLAR: Nordea have outlined 3 supportive factors for USD into month-end:

- 1) Month end rebalances (much like Citi & Credit Agricole).

- 2) SOMA Day: "the Fed has gradually been letting its balance sheet shrink at a

quicker and quicker pace, with a maximum shrinkage of USD50bn/month reached this

quarter (of which 30bn can be bonds and notes). As a consequence of the

maturities of bonds and notes bought by the Fed, liquidity shrinks a lot on some

days. From the maturity profile of the Fed's bond portfolio (the SOMA portfolio)

we know when these daily, negative, liquidity impacts will occur. The SOMA

redemption day on October 31 will be a hefty one and will necessitate the second

largest liquidity drain ever, after the one at the end of July. On the ten SOMA

days since the end of February, EUR/ USD has always been lower at CET17:15 vs

CET08:00, 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."

- 3) Tax reform prompting U.S. firms to repatriate T-2 days before the end of

the calendar month.