Eurozone morning wrap: A more contemplative session, but it still had it's moments

Greek newspaper Ethnos:  Private sector creditors will submit a new improved offer with an average interest rate of 3.75% after IIF's Dallara met with senior bankers in Paris Russian central bank's Ulyukayev:  Russia may start to buy the Australian dollar as an international reserve currency as soon as early February EU says no talk in Troika on ECB writedown of Greek debt - Bloomberg UK's PM Cameron: Proposed EU transaction tax is "quite simply madness" German FinMin: Doesn't expect bank rescue fund to be used German Gfk February consumer sentiment indicator rises to 5.9% from revised 5.7% in Janaury, better than Reuter's median forecast of 5.6 Italian auction results. And more French January consumer confidence index rises to 81 UK January CBI  retail sales balance -22%, down from +9% in December and worse than median forecast of -6%, lowest read since March 2009 Brazil jobless rate 4.7% in December, down from 5.2% in November "Stolpher" is out, says to go bullish EURUSD, with a 1.2900 stop - Zerohedge EUR/USD up marginally at 1.3145 from early 1.3120, having dipped very briefly below 1.3100 before rallying strongly to session high 1.3174. Real money was a notable seller in the 1.3110/25 area, helping keep a lid on the pairing in early European trade.  That's until reports of the Ethnos article (see above) started to filter through.  That lit a fire under the market and we rallied quickly higher with Middle Eastern buyers, as usual, notable. We got as high as 1.3174 where souces reported "decent" sell interest lined up on the EBS platform at 1.3177, and that was the top put in for now. Reports after that had Middle Eastern buy orders lined up down at 1.3140/45 initially (1.3135/45 later on) and Middle Eastern selling interest up at 1.3175/80, and those parameters have so far proven durable.  Obviously that won't remain the case for eva :) Barrier interest well-documented now up at 1.3200. Cable fractionally higher at 1.5675 from early 1.5660.  Forexlive reported sell orders clustered 1.5700/20 and we topped out at 1.5718.  Joe is da man!!! AUD/USD up at 1.0665 from early 1.0630.  The Russian news (see above) helped support the pairing early.  China subsequently sold 1.0680+, capping the rally at 1.0688. USD/JPY effectively unchanged at 77.60.  Guess the newly-minted USD/JPY bulls still licking their wounds after the FOMC/Bernanke-induced sell-off yesterday.  I have to admit, if I traded, I'd have been one of those bulls with dented horns ;)