Forex news headlines and trading data for the European session 22 January 2016

Asia headlines catch up: ForexLive Asia FX news wrap: More 'BOJ to ease further' chatter - Nikkei soars

FX has been pretty subdued among most of the majors so far. The action has all been in oil and the CAD.

WTI and Brent up through $31 have helped commodity currencies maintain their upward bias but it's been USDCAD where the big action has been. Up the stairs and down the lift shaft is probably the nest way to describe the move to now as volatility remains extremely high.

Dangerous times for tech watchers trying to pick support levels in the loonie but there are places to watch. whether this is a breather or a change of trend is too early to tell so the price action will be our guide. Either way it's probably wise not to get married to you positions right now

The pound is another pair that's finding some relief. God knows what that relief is though. Maybe endless days of getting slaughtered has run its course for now. The bounce still isn't remotely close to a full on reversal so the caution lights flash brightly here too. A bad show in retail sales was upstaged by great government borrowing numbers. You can't trust them as far as you can thrown them when the UK government is involved so we'll want to see it continue over the next two months at least. Don't hold your breath. Either way it's been enough to aid cable's rise from the bowels of hell and into 1.4300 as I type. There's plenty of hard work still to do though

EURUSD is still running between the same goal posts despite new looming action from the ECB. The sellers have been quick into rallies today though but that's likely to be the change in sentiment around right now. We're not going anywhere fast so there's nothing really to get our teeth into directionally

USDJPY has nodded off after some Asia inspired gains. We're holding above 118.00 which is positive but again, we're not seeing anyone grab it by the horns and take it for a ride

AUDUSD has pulled itself above 0.7000 which could be significant if we see a protracted hold. It's working for now but it needs to push on. The kiwi paints a similar picture but is finding harder work getting back above 0.6500 after failing earlier

Canada is in the spotlight again in about an hour with retail sales and CPI. Then we're back on the US manufacturing wagon with the Markit PMI. That's followed by existing home sales

All details can be found on our calendar