EUR, JPY flows: EUR softer after weaker German PMI

Weaker than expected German PMI and slightly weaker than expected French PMI should weigh a little on the EUR, which has benefited recently from a perception of improving growth prospects. The EUR has dipped modestly after the German data having risen a little after the French data. Combined with the weaker tone to equities, this suggests downside risks for EUR/JPY which already looks significantly overstretched.