ForexLive European morning wrap:focus on Yen as barriers fall

French Govt Budget Balance:  - Eur 12.8bn Spanish Industrial Production -5.00%, expected - 5.20% y/y Austrian Q4 GDP 0.10% vs estimate 0.20% Swiss February CPI 0.30% as expected, prior read was - 0.30% UK Inflation +3.60% in February for the year ahead Bank of Italy: bad bank loans rose in January by 17.5% UK's ONS: January Construction Output - 6.30%, - 7.90% y/y IMF's Lagarde on Ireland: two-thirds of fiscal work has been done German January Industrial Production unchanged at 0.60% The European session commenced with a quiet continuation from Asia with eyes on the Japanese yen which already taken out the long-awaited 95.00 and it gradually ate away at the next at 95.50 chewing through substantial offer at 60 and maintained a bid tone with a current high at 95.80. The Euro spent hours on the sidelines in a very narrow range allowing EURJPY a path to 125.70 when the EURUSD followed through to the 1.3130s. Sterling recovered some 40 points to test 1.5050 sellers on the back of rumoured demand covering divdend payments. The market awaits a catalyst for further direction which no doubt will come from the NFPs.