Sentiment remains negative on Tuesday.


For a while, it looked like equities will try to erase some of yesterday's losses as indices opened the London session half a percent stronger. However, a strong selling wave then occurred, and EU bourses dived into 0.5% losses shortly after the open. 

Later in the day, US durable goods orders are due for September, and numbers are expected to decline from August's levels, confirming the US economy's weakening state. 

House Speaker Nancy Pelosi said Monday that she remained hopeful an agreement can be reached before the November 3 elections, but this looks increasingly unlikely. Yesterday, Mnuchin said that there are many issues in Pelosi's new proposal and that she won't budge a bit, leading to a sharp sell-off in risk assets. 

The greenback was trading stronger today, which usually happens in times of de-risking. The EURUSD pair fell back below the 1.18 level, while cable declined to 1.30. Overall, there are no medium-term trends in the FX market, and most of the major pairs are trading sideways since the summer. 

The COVID situation is getting worse each day, and the world posted a new record in new cases yesterday. Half of Europe is already under some form of a lockdown, with more restrictions on the way. Thus, the economic depression will most likely continue throughout the winter. 
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