EUR/JPY consolidates above 177.50 amid strong EMU data, Yen weakness 

• The Euro remains steady above 177.00 against a weaker Yen.
• An unexpected improvement in the Eurozone's preliminary PMIs increased support for the Euro.
• Market concerns about Japan´s public finances are undermining confidence in the Yen.

The Euro rallied for the fourth consecutive day against a weaker Japanese Yen on Friday. The pair has returned to the upper range of the 177.00s after a slight pullback to 177.30 and is on track for a 1.8% weekly gain, its best performance since late June.

The common currency has drawn some support from the upbeat Eurozone HCOB Purchasing Managers' Index (PMI) figures released earlier on the day, which have improved confidence in the region's economic outlook, strengthening the case for a steady European Central Bank (ECB) monetary policy in the coming months.

October's preliminary PMI figures revealed that the services activity expanded at its fastest pace in the last 12 months, with a 52,6 reading against expectations of a mild slowdown to 51.1 from the previous month's 51.3.

Furthermore, the contraction in the manufacturing sector halted in October, with the index improving to the 50.0 level, which marks a standstill, against expectations of a decline to 49.5 from the previous month's 49.8.

The Yen, on the other hand, remains vulnerable amid market speculation that the new Prime Minister Takaichi's cabinet is working on a USD 90 billion stimulus program that would add pressure to the already strained public finances.