European morning wrap: Euro gives ground in sluggish trade

German Gfk consumer confidence survey for February 5.8, up from upwardly revised 5.7 in January (prev 5.6) and better than median forecast of 5.7 EU Commissioner Rehn: Concerned over the EU 'North-South divide'  Growth can't be bolstered by a reversal in fiscal consolidation German BDI industry federation chief says worried about devaluation race stemming from Japan central bank policy German December import prices -0.5% m/m, +0.3% y/y, weaker than median forecasts of -0.1%, +0.9% respectively French January consumer confidence unchanged at 86, as expected Spanish December calendar-adjusted retail sales -10.7%, weaker than previous -7.8% and weaker than expected -8.9% Italian auction results Japan's FinMin Aso: Hope recent yen weakness helps improve business sentiment. Deflation can't be beaten by monetary policy alone. Also need simultaneous fiscal stimulus and policies to support new industries Moody's: Ireland's banking system outlook remains negative.  Outlook unchanged since 2008.  Reflects Moody's view that banking system hasn't yet fully stabilised France 'totally bankrupt', says Labour Minister Michel Sapin - The Telegraph Greek farmers, doctors, seamen plan walkouts - ekathimerini The single currency has given up some ground in what has been a sluggish trading session. EUR/USD down at 1.3430 from early 1.3445, EUR/JPY down at 121.40 from early 121.95. Buy orders seen clustered down at 1,3400/20 and they are so far cushioning the euro slippage.  Sell stops seen through 1.3400. Topside, sell orders clustered 1.3480/00 ahead of 1.3500 barrier option interest. USD/JPY  down at 90.40 from early 90.70.  Buy orders seen clustered 90.00/20, sell stops through 90.00. Cable marginally firmer at 1.5722 from early 1.5702.  EUR/GBP down at .8540 from early .8563.  Talk had RHS interest lined up for the 09:00 GMT fix but there was no discernible rally in the cross around that time. Sat around .8560 at the time and it's been a slow slide lower ever since. EUR/CHF down at 1.2410 from early 1.2455, reflecting the general euro weakness.