Market Sentiment Remains Shaky, But Little Readthrough for FX So Far

EUR/USD inched through the Monday low in early Tuesday trade, with a poor open for European equity markets leaving stock market sentiment fragile. While US futures volumes sit well below average for this time of day, prices have stabilised slightly, with some support coming from better European bank earnings, with HSBC and Santander reports in focus. It appears this support is already beginning to fade however, which may keep markets concerned over a return to the week's lows.

The greenback is mixed/lower, with the likelihood of a pre-election stimulus package dwindling close to zero as the Senate take their pre-election break. NOK, CAD slightly outperform on better oil prices.

It's a relatively quiet data day, with just US durable goods, consumer confidence due. FOMC still in pre-decision blackout period. Caterpillar, Merck & Pfizer are due ahead of the bell, with Microsoft reporting after the close.