Session Recap: USD takes a breather

FXStreet (Córdoba) - European session has seen majors consolidating in recent ranges, with the dollar retreating slightly from its recent 7-year high against the yen and a 2-year peak against the euro.

EUR/USD advanced a tad and managed to settle above 1.2500, although it remains capped by the 1.2525 zone on the upside. GBP/USD trades in a slim range around 1.6000, while USD/JPY dipped back below 104.00 after striking a 7-year high of 104.20 the previous day. AUD is among the best performers Tuesday, following the release of upbeat domestic data and no signs that the RBA is considering easing further.

European equities were little changed on the day, wavering between small gains and losses while crude oil slumped and hit a fresh 3-year low of $75.90 a barrel after Saudi Arabia cut the price of its products being shipped to the US.

During the New York session, watch for US trade balance, factory orders and BOC's Poloz testimony.

Main headlines in Europe:

Spain Unemployment Change came in at 79.2K, above forecasts (23.4K) in October

What’s the sentiment around EUR/USD today? – Commerzbank and Danske Bank

UK: PMI Construction slides to 61.4 in October

European Monetary Union Producer Price Index (YoY) registered at -1.4% above expectations (-1.5%) in September

Gold sees lackluster trading

German ten-year bond yield near two-week lows