By: Mike Paterson

The forex trading headlines for the European morning session 20 June Nikkei closes down 1.74% at 13,o14.58 UK retail sales may + 2.1% vs +0.8% exp -1.1%prev revised up from -1.3% SNB leave interest rates and EURCHF cap unchanged SNB's Jordan expects swiss franc to fall further over the next few quarters SNB's Jordan hasn't considered exit policy. All measures still on the table for ECB too Swiss trade balance may: CHF +2.24 bln vs +2.2 bln exp +1.7 bln prev German producer prices may m/m -0.3% vs -0.1% exp French mftg flash PMI june: 48.3 vs 47 exp . services 46.5 vs 44.8 exp German mftg flash PMI june 48.6 vs 49.9 exp. services 51.3 vs 50 exp UK CBI industrial trends orders june  -18 vs -15 exp  -20 prev EZ mftg flash PMI june 48.7 vs 48.6.  services 48.6 vs 47.5 Gold meltdown continues to USD1288 SNB wants large swiss banks to increase transparency to risk Italian PM Letta wants to work with Switzerland on tax issues Spain's Linde see growth in Q3 but still risks to banking system French pres Hollande sees no growth in France in 2013 It didn't take a rocket scientist to guess that we'd have a busy time of it this morning but USDJPY certainly took off into space again as Europe reacted to Mr B's moment of truth last night. Equity markets have also been on the backfoot as widely expected. The Nikkei closed lower but that didn't deter the yen sellers as the correlation has been weaker in recent sessions anyhow. Failure to hold below 97.00 prompted the launch through 97.50 offers, and even stronger sell interest at 98.00 before coming back to earth from the tech res level at 98.29. Yen pairs were dragged higher in its wake ,limiting the effect of USD buying elsewhere but EURJPY found 130 one step too far. USDCHF had taken a nice ride higher too and was given a further lift by the SNB which left rates and EURCHF unchanged but reiterated its position to throw the kitchen sink at preventing the swiss franc from strengthening. The aussie dollar continued its rapid decline, not helped by more concerns over China and the tumbling gold price which has now traded below USD1300 for the first time since sept 2010. AUDUSD found a little support from yen selling and reports of the BIS buying at 0.9240 but all to no avail as we sank to test key lows around 0.9160. A good recovery since then but still looking fragile.NZD and CAD had their moments too of course as did others. Apart from the greenback the only other candidate for man- of -the- match in this session was the good 'ol pound which enjoyed its time in the sun basking in the glow of better than expected retail sales. GBPUSD got a lift to 1.5484 from 1.5435 and EURGBP fell from 0.8582 through 0.8550 support to test next levels at 0.8530. Needless to say GBPJPY, GBPAUD and GBPCHF have all had a good time of it too. So that's it for the first morning post-FOMC and the jury is still out on whether this move is  knee-jerk or something more substantial. But for now it's time to throw the ball back across the pond.