EUR/GBP trades lower on Friday as solid UK Retail Sales and stronger preliminary Purchasing Managers Index (PMI) data lift the British Pound (GBP). Although the stronger-than-expected Eurozone HCOB flash PMI failed to provide meaningful support to the Euro (EUR) and kept the cross under pressure.

The Pound Sterling (GBP) edges higher to near 1.3470 against the US Dollar (USD) during the European trading session on Friday after recovering earlier losses.

DBS's Chang Wei Liang note USD/JPY has moved above 155 on broad Dollar strength, even as geopolitical risks could support the Japanese Yen as a safe haven. Japan’s FY26 budget debate and Prime Minister Takaichi’s proposal to suspend the consumption tax on food are seen as key for JPY direction.

MUFG’s Head of Research Derek Halpenny notes that EUR/USD has fully reversed its late-January rally, dropping about 2.5% back toward its opening 2026 level.

EUR/JPY trades around 182.75 on Friday at the time of writing, up 0.13% on the day, supported by stronger-than-expected activity data from the Eurozone and a slightly softer Japanese Yen (JPY) following cooling inflation figures.

On Friday, the European Central Bank (ECB) released its indicator of the Euro area’s Negotiated Wage Rates data for the fourth quarter (Q4) of 2025.

Societe Generale economists Reo Sakida and Jin Kenzaki review latest Japan inflation data, noting Headline at 1.5%, Core at 2.0% and Core-core at 2.6%.

Eurozone HCOB Manufacturing PMI above forecasts (50) in February: Actual (50.8)

Eurozone HCOB Composite PMI came in at 51.9, above forecasts (51.5) in February

Eurozone HCOB Services PMI below expectations (52) in February: Actual (51.8)

The USD/CHF pair is up 0.15% to near 0.7765 during the European trading session on Friday, the highest level seen in over a week.

Germany HCOB Composite PMI came in at 53.1, above expectations (52.2) in February

Germany HCOB Manufacturing PMI above forecasts (49.6) in February: Actual (50.7)

Germany HCOB Services PMI above forecasts (52.2) in February: Actual (53.4)

DBS's Chang Wei Liang note USD/JPY has moved above 155 on broad Dollar strength, even as geopolitical risks could support the Japanese Yen as a safe haven. Japan’s FY26 budget debate and Prime Minister Takaichi’s proposal to suspend the consumption tax on food are seen as key for JPY direction.

France HCOB Composite PMI above forecasts (49.6) in February: Actual (49.9)

France HCOB Manufacturing PMI below forecasts (51.4) in February: Actual (49.9)

France HCOB Services PMI came in at 49.6, above expectations (49) in February

ING’s Francesco Pesole sees the Euro vulnerable when Oil rises, despite some support from risk-off flows and its safe-haven role versus the Dollar.

The United Kingdom (UK) docket has the preliminary Purchasing Managers’ Index (PMI) data for February to be released by the S&P Global on Friday, later this session at 09:30 GMT.

The Pound Sterling (GBP) claws back its early losses and flattens around 1.3460 against the US Dollar (USD) during the European trading session on Friday. The GBP/USD pair attracts bids after the release of the United Kingdom (UK) Retail Sales data for January.

The USD/JPY pair gains positive traction for the third straight day and climbs to over a one-week top, around the 155.35-155.40 region on Friday.

Here is what you need to know on Friday, February 20:

The preliminary German and Eurozone HCOB Purchasing Managers’ Index (PMI) data for February is due for release today at 08:30 and 09:00 GMT, respectively.

Germany Producer Price Index (YoY) came in at -3%, below expectations (-2.1%) in January

Germany Producer Price Index (MoM) below forecasts (0.3%) in January: Actual (-0.6%)

NZD/USD has pared its recent gains registered in the previous session, trading around 0.5950 during the Asian hours on Friday. The technical analysis of the daily chart signals an emergence of the bearish reversal as the pair price is positioned below the lower ascending channel boundary.

Commerzbank’s Michael Pfister notes that while EUR/USD has slipped back below 1.18 and the Euro’s spot gains versus the Dollar are modest year-to-date, options markets still reflect a structural shift since “Liberation Day.” He argues that investors increasingly use EUR options to hedge Dollar risk,

Scotiabank analysts Shaun Osborne and Eric Theoret note that GBP/USD is trading defensively below 1.35, extending weekly losses as weaker jobs data and narrower yield spreads erode support.

The USD/CAD pair trades in negative territory near 1.3695 during the early European session on Friday. The Canadian Dollar (CAD) strengthens against the Greenback amid higher crude oil prices.