ForexLive European Morning Wrap – Quiet Consolidation the Order of the Day so Far

The Pound extends gains after BOE governor King's comments last night that he thinks it's " properly valued" now.
Swiss Feb Producer/Import prices + 0.1% vs -0.1 prev
Eurozone Feb final inflation as expected and unchanged at +0.4% m/m and +1.8% y/y
EURUSD sees good demand from fund-buying
EURJPY has another rally toward 126.00
EURGBP fails to break down through 0.8600 and bounces back

In what has been probably the quietest session for ages with regard to data and rhetoric, despite the imminent start of the latest EU gathering, we've seen a futher correction to the USD's recent rise

The Pound was given another lift in the light of comments made last night by BOE governor King who said he thought the pound had fallen far enough and was now " properly valued". I guess he must have been listening to my interview with the BBC on Monday ! Either way GBPUSD has been drawn to the magnet of 1.5150 which had barrier interest but also still has option expries at 14.00 gmt. Large bamboo eating asian puported to be the protector but the market stood up and eventually took it through having failed twice earlier in the session and falling back to 1.5110. High posted so far 1.5168.

EURUSD has been gently bid all morning with large funds adding to asian sovereign buying. We paused at 1.3050 resistance but then went through only to run into sellers between 1.3060-80 and we've been trading around the highs for the past hour or so. EURGBP has strong buying interest and this has held off an attack earlier that failed at 0.8602 and bounced back to 0.8622

The EURUSD demand has given EURJPY some good support and it looks to be targetting strong resistance at 126.00 byut failed so far at 125.75. USDJPY also looking well supported on the back of this combination but has traded very quietly around 96.10 for most of the morning.

AUDUSD has had a quiet session but equally has been consolidating recent gains  without going anywhere in a hurry, and that just about sums up the session so far.

But with a raft of data from the US coming up over the next hour or two plus the statutory hot air from the EU summit I think things may just get a little livelier.