European Summary and Highlights 01 Feb

The USD was little changed against the EUR and JPY in the European morning, but saw some modest gains against GBP and SEK.
European morning session
The USD was little changed against the EUR and JPY in the European morning, but saw some modest gains against GBP and SEK. EUR/GBP rose around 20 pips to 0.8545, while EUR/SEK gained 5 figures to 11.29.
The Riksbank meeting was the main news of the morning, with the decision seeing no change in rates as expected, but the statement indicating the possibility of an H1 rate cut and a more dovish view than seen at the November meeting.
Otherwise, Eurozone CPI was marginally higher than expected at 2.8% headline, 3.3% core, while the Eurozone unemployment rate was unchanged at 6.4% and the final manufacturing PMI unrevised at 46.6. The UK manufacturing MI was revised down slightly to 47.0 from 47.3.
Asia session
After Powell suggest a March rate cut isn't base scenario for now, U.S. equities sunk. And the drop is paused in the Asia session for U.S. equities while regional equities perform individually as China Caixin Manufacturing PMI for January came in stronger at 50.8 than expectation of 50.6. With soft sentiment and solid USD, the AUD/USD is losing 0.44% for the session to trade at 0.6538, NZD/USD also dragged 0.13% lower at 0.6109 where USD/CAD rose 0.11% as oil erased early gains.
U.S. Treasury Yields recover partial lost ground post FOMC and on the contrary 10yr JGB yields sunk past 0.7%. USD/JPY is unchanged for the session at 146.85 as Powell's suggestion meant more time before yield further narrowing. Elsewhere, EUR/USD is down 0.14% and GBP/USD is down 0.16%.