North American Summary and Highlights 4 Jan

Overview
The USD slipped versus the EUR on European data, but advanced versus the JPY supported by US data.
North American session
The USD was generally firmer through the North American session, gaining ground primarily against the JPY. USD/JPY rose around 40 pips to 144.60. EUR/USD was not much changed at 1.0950, but the USD made small gains against the AUD and CAD as well.
USD gains were helped by stronger than expected ADP employment data, which showed a 164k rise in December, and lower than expected initial and continuing claims data, which helped US yields rise. The EUR was supported by German CPI coming in line with expectations after the early state data suggested potentially softer numbers.
European morning session
The USD fell back against the EUR, GBP and other European currencies through the European morning, with the CAD also making modest gains, but the JPY fell sharply and the AUD edged lower. EUR/USD gained around 30 pips to 1.0955, while GBP/USD gained around 40 pips to 1.2710. USD/CAD fell back to 1.3320 from 1.3340, and AUD/USD edged lower to 0.6735 from 0.6740, having briefly risen as high as 0.6760. But USD/JPY was the biggest mover, gaining to 1.4420 from an open at 143.45.
EUR and GBP gains were driven mainly by upward revisions in services PMIs, which helped to push yields slightly higher, while equities also edged up. This combination proved negative for the JPY, although the extent of the JPY move looks excessive. German and French CPI data was marginally on the soft side of expectations, but still rose significantly on a y/y basis due to base effects. UK money data was also mixed, with a decline in M4 offset by higher than expected lending to individuals and mortgage approvals.