ForexLive European Morning Wrap: Euro Steady as Traders Await Further Clues

The forex trading headlines for the european morning session US Fed's Fisher repeats call for reduced bond buying. says growth steady but not accelerating N Korea says it will enter combat posture aimed as US mainland bases ECB's Couere says cyprus bailout is not a new model for europe French consumer confidence march 84 vs 85 exp 86 prev Cyprus fin min Sarris says on bbc radio that he thinks banks will re-open on thursday. capital controls to be in for a matter of weeks ECB's Nowotny says cyprus is a special case. not a model for others. UK CBI distributive trades survey march 0% vs 11% exp 8% prev.. stronger april expectations limit impact on pound UK FSA announces lower capital requirements for start up banks in a bid to boost competition. EU Commission hasn't ruled out bailing-in uninsured deposits of EUR100k+ This really has been a a quiet session. Yesterday saw a fair bit of movement but it was at least relatively orderly until I turned my back and Mr D opened his mouth, but today we've been very contained as traders await futher clues. Little in the way of data or indeed rhetoric has led to tight ranges with EURUSD failing to breach asian highs of 1.2885, having a wander down to break lows of 1.2848 but then found support at 1.2838 as reported barrier option defence at 1.2825 ( and 1.2800 behind that) came into play. EURJPY has been a little more lively tracking EURUSD but also  suffering from year-end yen demand and falling from 121.65 to 120.85  then getting a boost to 121.57 from support in USDJPY which held 94.00 and rallied to 94.45 only to run into good selling interest at 94.50. AUDUSD posted 2 month highs of 1.0481 but once again appears to be capped for the moment by good selling interest between 1.0490-1.0500 and indeed all the way up to 1.0600. The pound has mainly been a bystander again  with cable struggling to get back above 1.5200 and falling back to 1.5155. Weaker than expected cbi survey didn't help while strong demand at 0.8450 on EURGBP has added to the session pressure on GBP and we've seen a run back up to 0.8493. Let's hope we get some further direction soon but this period of consolidation has to be expected after the moves of the past few sessions.