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According to the latest monthly report published by the German Finance Ministry on Friday, the coronavirus pandemic had a massive hit on the government tax revenues in April.

Key takeaways

“Tax revenues of the German government and the 16 federal states declined by 25.3% in April from a year earlier to around 39 billion euros ($43 billion).”

“Early indicators show that the situation will likely remain difficult over the next months.”

“The revenue decline was most severe for income, corporate and air traffic taxes, the report showed. “

“The pandemic’s impact on tax revenues were first visible in March but has now accelerated.”

Market reaction

EUR/USD is nursing losses around 1.0900, weighed down by relentless US dollar buying across the board, as investors run for cover amid intensifying US-China tensions.

At the moment, the spot trades at 1.0905, down 0.40% on the day, having hit a daily low of 1.0894.