Euro steadies against Japanese Yen as Eurozone PMIs beat forecasts

EUR/JPY currency pair remained relatively stable around 181.94 on Wednesday, following a four-day recovery. The cross had partially regained from the losses caused by Japan's intervention and the Bank of Japan's cautious stance. The Euro (EUR) benefited from stronger-than-anticipated final services surveys. Spain's HCOB Services Purchasing Managers Index (PMI) increased to 58.3 in July, significantly higher than the 55.3 initial estimate and above the previous 54.2.

Germany's Services PMI was revised upwards to 49.8 from 49.6, although it is still below the 50 mark separating expansion from contraction, while the German Composite PMI gauge marginally improved to 51.3. The Eurozone Composite PMI rose slightly to 52 from the previous 51.9. On the Japanese side, the Bank of Japan published the minutes from its June policy meeting.

While the document was released prior to the suspected intervention and the recent decision to maintain rates at 1%, investors examined the discussion for any early indications of a hawkish shift in the central bank's policy. Policymakers were discussing price risks that may necessitate further rate hikes, despite already raising borrowing costs to a 31-year high during that meeting.

The board voted 7-1 to increase the policy rate by 0.25 percentage points to approximately 1%, with Asada Toichiro opposing the move due to perceived downside risks to production and employment.