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European Central Bank (ECB) Governing Council member Francois Villeroy de Galhau on Thursday argued that economic conditions in Germany warrant fiscal spending. Regarding the policy outlook, “It’s reasonable to expect that short term rates are close to bottoming out,” Villeroy said. “Raising rates would be a mistake, low short-term rates must stay in place.”

On the other hand, “the German  economy is not really in the danger zone,” noted German Finance Minister Olaf Scholz.

Earlier in the day, the data published by Germany’s Destatis revealed that the Gross Domestic Product (GDP) expanded 1% on a yearly basis in third-quarter (preliminary) to beat the market expectation for 0%.

In the meantime, the EUR/USD pair is trading at fresh monthly lows near 1.0990, losing 0.12% on a daily basis.