European Summary and Highlights 4 Jan

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 SAUD 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.
Asia session
BOJ Gov Ueda says he hopes Japan's economy can balance rises in wages and & inflation which does not bring any new information to market participants. The market focused on potential escalation of geopolitical tension as the U.S. may retaliate after the Red Sea attack. Market sentiment was not bright after the overnight slump in U.S. equity market and sentiment continue to remain sour in the Asia session. USD has outbid JPY for haven and see USD/JPY rose 0.26% to 143.66 with U.S. Treasury Yields in the green while JGBs yields in the red. 
Once again the PBoC has fixed the onshore Yuan significantly stronger than expected in an attempt to slow the fall of Yuan in sight of recent USD strength. It is a mized picture for China on Thursday as we see the Caixin Services PMI for December came in stronger at 52.9 vs 51.6 expected but we are also hearing Fitch downgrades four Chinese National asset management firms. Shrugging off soft regional sentiment, the Aussie gain proxy support and see AUD/USD trading 0.11% higher at 0.6739, NZD/USD is also 0.28% higher at 0.6264 while USD/CAD slipped 0.1% to 1.3338 on higher oil. Elsewhere, EUR/USD is up 0.05% and GBP/USD is up 0.02%.