European Summary and Highlights 17 Jan

European morning session
The USD was generally not much changed through the European morning, but GBP made some modest gains after a stronger than expected December CPI number, while the scandisk extended the decline seen since the start of the week. 
UK December CPI came in at 4.0% headline, 5.1% core, both higher than expected, but the core number was unchanged from the November y/y gain, and the headline only 0.1% above. Some of the rise was due to higher tobacco duties, and the annual inflation rate is still below where the BoE expected it at the time of the November MPR, so the data was of limited significance, Nevertheless, UK yields rose strongly in response, and EUR/GBP fell back around 40 pips to 0.8575. 
There was no particular trigger for scandi losses, but both the NOK and SEK continues to slip lower against the EUR, which gained around 3 figures against both.

Asia session
On Wednesday, we have China Q4 GDP which came in slightly lower than 5.3% estimate at 5.2% but improving from 4.9% in Q3, it shows a 1.0% q/q improve which meets estimate. Overall, it meets thew Chinese government goal of 5% growth. The other Chinese activity data showed a mixed picture which is in line with the ongoing scenario in China. Regional equities are lower, so as U.S. major equity indexes but to a smaller magnitude. AUD/USD stay depressed by these factors and is trading 0.33% at 0.6562, NZD/USD also 0.22% lower at 0.6124 while USD/CAD is 0.11% higher at 1.3509.
USD continue to trade stronger against majors with the backdrop of empty geopolitical headline. U.S. Treasury Yields are performing mixed while JGB yields are higher. Yet, it does not stop the USD/JPY to march higher after breaking the Jan 11 high and has reached level last seen on Dec 1 at 147.57 and is 0.27% higher for the session. Elsewhere, EUR/USD is 0.11% lower and GBP/USD is 0.2% lower.