ForexLive European Morning Wrap: Consolidation With Little to Excite.

BOJ's Kiuchi underlined Japan's intent to fix finances and the need for long-term price stability
Australian interest rate cut less likely after Q4 Capital Expenditure falls 1.2% vs expected +1.0%
Swiss GDP +0.2% m/m and +1.4% y/y
Japan govt forecast primary budget decifit to widen to 6.6% in 2012/13 and 6.9% in 2013/14
French Consumer Spending (m/m) fell to -0.8% from previous 0.2%, against expectation -0.2%
French PPI (m/m) 0.5% from last month's -0.4% and an expectation 0.2%
Spanish GDP (q/q)  -0.8%, previously -0.7%, expectation -0.7%
Danish GDP (q/q) -0.9%, previously +0.8%, expectation -0.3%
Danish Unemployment 4.70% the same as prior month
Swedish Retail Sales (m/m) 0.10% on expectation, previously 0.70%
Swedish PPI (m/m) 0.00% against expectation 0.30% and previous 0.50%
German Unemployment 6.9% vx expected 6.8%, last at 6.9%, change of - 3000
Norway Retail Sales (m/m) 1.00%, expectation 0.50% and last 0.20%
Euro zone CPI (y/y) flat at 2.0%, as expected and previous print; Core CPI 1.3% vs 1.5% expected and last print
Greek Retail Sales - 8.50% last at -16.7%
Italian President Napolitano: constitution doesn't allow speeding up of new govt formation

A host of minor european data was largely ignored by an overall lacklustre market.

After a relatively bouyant asian session positive for risk, the european session saw a gentle reversal with the EURUSD dipping briefly below 1.3100 to bounce on an approach to the H1 200ma. EURJPY moved in sympathy with flow-driven move to a low of 120.61 but has not regained the 121 handle.

Mooted expectations of further month-end euro demand have not been in evidence and no new news or comments of significance from politicians. Perhaps the Italians are taking some time to mull over their destiny.

Sterling has had a better morning with cable enjoying a run to 1.5204 and currently hovering with a bid tendency just below at 1.5195 and the EURGBP at 0.8630, the lower end of the session range having been sold off following the usual month-end demand yesterday driving it higher, thus assisting in cable's bid tone.

USDJPY traded in a 40 pip band for the most part of the morning with, again, nothing further from the 'powers that be' other than some further 'same vein' rhetoric from BOJ's Kiuchi.

Equity markets have been bouyant and Gold has settled below 1600 at 1591, the middle of the days range after it's flurry yesterday.