Euro treads water vs Yen as Japanese inflation, European PMIs offset each other
EUR/JPY trades around 185.70 on Friday at the time of writing, virtually unchanged on the day. The Japanese Yen (JPY) gains some support from firmer Japanese inflation data, but the move is offset by resilience in the Euro (EUR) following better-than-expected activity indicators in the Eurozone.
On Friday, the Euro (EUR) maintained a relatively stable position against the Japanese Yen (JPY) at 185.70, with minimal change throughout the day. Japanese inflation data provided some support to the Yen, while better-than-expected European economic indicators bolstered the Euro. In Japan, the core Consumer Price Index (CPI) rose 1.8% year-over-year in July, marking the fastest pace of growth since January.
This acceleration in inflation could signal potential interest rate hikes by the Bank of Japan, bolstering the Yen's value and stifling further upside in the EUR/JPY pair. Meanwhile, the Eurozone showcased resilient manufacturing activity with the preliminary HCOB Manufacturing Purchasing Managers Index (PMI) increasing to 52.8 in August, surpassing expectations of 51.8.
Although the Services PMI remained unchanged at 51.7, the Composite PMI rose to 52.1, exceeding the market consensus of 51.7. Germany's data demonstrated a notable improvement in the manufacturing sector, with the Manufacturing PMI reaching 54.1 in August, the highest level in 51 months, while the Services PMI dropped to 48.5 from 49.8. These mixed signals left the Euro-USD pair broadly balanced around 185.70.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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