EUR/JPY holds losses near 172.00, moves little following Eurozone PMI data
- EUR/JPY shows little reaction to the HCOB Purchasing Managers’ Index (PMI) data from the Eurozone.
- Eurozone Manufacturing PMI rose to 49.8 and Services PMI advanced to 51.2 in July.
- The Japanese Yen receives support from optimism surrounding the new US-Japan trade deal.
EUR/JPY loses ground after halting its five-day winning streak, trading around 172.20 during the European hours on Thursday. The currency cross remains subdued despite the release of improved HCOB Purchasing Managers’ Index (PMI) data from Eurozone.
The preliminary HCOB Composite PMI climbed to 50.0 in July, from the previous 50.6 reading and surpassing the expected 50.8. Meanwhile, the Eurozone Manufacturing PMI rose to 49.8, from 49.5 reported in June, matching the market consensus of 49.8. The Services PMI advanced to 51.2 from 50.5 prior, coming above the expected 50.8 reading.
The HCOB Preliminary German Composite Output Index came in at 50.3 in July, against 50.4 in June and 50.7 expected. The index was at its lowest level in two months. Meanwhile, the Manufacturing PMI improved to 49.2 from June’s 49.0, though missing the market forecast of 49.4. The measure hit a 36-month high. Services PMI grew to 50.1 from 49.7 prior, against the expected 50.0 reading.
Moreover, Germany’s GfK Consumer Confidence Survey fell to -21.5 for August from -20.3 prior reading. The print missed market consensus of -19.2, marking the lowest reading since April. The decline highlighted rising consumer pessimism driven by economic uncertainty, including worries about US tariffs on European goods.
The EUR/JPY cross also depreciates as the Japanese Yen (JPY) gains ground due to optimism surrounding the new United States (US)-Japan trade deal. On Tuesday, US President Donald Trump announced a major tariff deal with Japan, which includes a 15% tariff on Japanese exports.
Economic Indicator
HCOB Composite PMI
The Composite Purchasing Managers’ Index (PMI), released on a monthly basis by S&P Global and Hamburg Commercial Bank (HCOB), is a leading indicator gauging private-business activity in the Eurozone for both the manufacturing and services sectors. The data is derived from surveys to senior executives. Each response is weighted according to the size of the company and its contribution to total manufacturing or services output accounted for by the sub-sector to which that company belongs. Survey responses reflect the change, if any, in the current month compared to the previous month and can anticipate changing trends in official data series such as Gross Domestic Product (GDP), industrial production, employment and inflation. The index varies between 0 and 100, with levels of 50.0 signaling no change over the previous month. A reading above 50 indicates that the private economy is generally expanding, a bullish sign for the Euro (EUR). Meanwhile, a reading below 50 signals that activity is generally declining, which is seen as bearish for EUR.
Read more.Last release: Thu Jul 24, 2025 08:00 (Prel)
Frequency: Monthly
Actual: 51
Consensus: 50.8
Previous: 50.6
Source: S&P Global
Author
Akhtar Faruqui
FXStreet
Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.
