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The German Finance Ministry’s monthly report, out early Thursday in Asia, portrayed quite a dovish scenario of Eurozone’s largest economy while relying on early indicators to industrial production and employment numbers.

Key quotes

  • Early indicators pointed to a sustained slowdown in the industrial sector.
  • Export-oriented manufacturers suffering from weaker foreign demand.
  • Growing trade tensions.
  • Uncertainty over Brexit.
  • External risks have increased significantly and are fuelling business uncertainty.
  • Forward-looking indicators were pointing to a further slowdown in employment growth, especially in manufacturing.

FX implications

As news like this has higher impact during the European session than the Asian one, the Euro (EUR) may witness a downside pressure on the market open.