ForexLive European Morning wrap: Consolidation Time as Gold and Euro Creep Higher Again

The forex trading headlines for the European morning session UK retail sales march  m/m -0.7% vs -0-0.8% exp +2.1% prev Gold recovers to USD 1398 from 1337 lows encouraging risk-on sentiment Bundestag lower house approves Cyprus bail-out with large majority of 385 Spanish bond auction goes well.. take-up of EUR 4.71 bln vs 3.5-4.5 bln target French bond auction matches expectation. take -up of EUR 7.91 bln vs 7-8 bln target SNB's Zurbreugg says further CHF appreciation would have severe consequences for economy Leading German institutes revise GDP forecast lower. Want to see rates on hold Nikkei closed 1.22% lower at 13,220.07 After the fun and games of the past two days we've had a relatively quiet session but still plenty of action and opportunity led mostly by the JPY pairs once again. Gold has edged higher toward USD1400 all morning after an early dip back to USD1363 that took USDJPY down to 97.86, EURJPY to 126.62 and AUDUSD to 1.0291. Since then though it's been a risk-on sentiment with gold posting highs of USD1398,USDJPY 98.52 ( only to run into sell-orders again), AUDUSD 1.0335, EURJPY 128.79 and EURUSD 1.3073. The euro has also benefitted from well-received bond auctions in Spain and France and approval of the Cyprus bail-out by a large majority in the Bundestag lower house. EURUSD had a couple of wobbles earlier but has steadily risen through the session from lows of 1.3031. The pound also had a shake-down on the back of weak retail sales data but this was largely front-run with cable coming from 1.5250 to 1.5230 immediately prior to the release. A further shunt lower to 1.5218 has been followed by a steady rise to 1.5271 as I type. CAD and NZD have also found support with the more positive mood prevailing throughout the pairs. Attention will shift now to US data and G20 rhetoric, with Japan  the main focus for traders.