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A group of five leading economic institutions in Germany is forecasting a severe recession with a contraction of 9.8% in the second quarter of 2020 after shrinking by 1.9% in the first quarter. Output growth is set to fall by 4.2% in 2020 and bounce by 5.8% in 2021. Consumer prices are set to increase by only 0.6% this year and pick up to 1.2% next year. 

Earlier, the Bank of France said it predicts the economy contracted by 6% in the first quarter and that every two weeks of lockdown cost the economy 1.5% in yearly growth.

EUR/USD is trading around 1.0850, down on the day.