In its monthly report, the German central bank (Bundesbank) noted that the GDP could once again have contracted slightly in the third quarter.
“The German economy got the third quarter off to a sluggish start, too. This was due primarily to export-oriented industry,” the publication read. “Industrial production continued its slump in July, with production figures down significantly on the month.”
Regarding the outlook, “experts still see risks to German economic activity, especially caused by the global environment,” Bundesbank noted. “They see heightened geopolitical or trade tensions potentially extending or exacerbating the downturn, especially in German industry, which is heavily reliant on export business.”
The EUR/USD pair, which fell sharply on disappointing Purchasing Managers Index (PMI) figures from Germany and the eurozone continues to trade below 1.10.
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