Session Recap: USD reverses losses

FXstreet.com (Córdoba) - The US dollar saw a short-lived drop during the European session amid news the People's Bank of China would consider widening its trading band with the yuan. However, the USD quickly reversed losses as investors were still looking for more details of China's monetary reforms.

The EUR/USD printed a fresh 2-week high of 1.3542 only to fall back below 1.3500 most recently. The GBP/USD shows a similar picture, having fallen below 1.6100 after peaking at 1.6130. The USD/JPY was barely affected by news and continued to trade within its recent range just below 100.00.

Meanwhile, the Aussie is among the best performers given China reform news. The AUD/USD holds onto gains above 0.9400 after reaching a high of 0.9446.

During the New York session only a couple of second-tier indicators are due, including the US employment cost index and the Redbook index.

Main Headlines in Europe:

Morning outlook: Risk on rally runs out of steam in Asian session

ECB's Praet optimistic on Eurozone recovery

Germany: ZEW Survey – Economic Sentiment improves further to 54.6 in November

EMU: ZEW Survey – Economic Sentiment up to 60.2 in November

EMU: Construction Output slides by 1.3% in September

Spanish sells 12-month bonds at record low yield of 0.678%

United Kingdom 10-y Bond Auction declines to 2.73% from 2.74%

OECD lowers 2014 global growth forecast to 3.6%