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German Economy Minister Peter Altmaier said on Wednesday, the economy will likely start to expanding again from October or November.

“We are optimistic that in the fourth week of July we can pay out the first lot of interim aid to the SMEs,” he added.

The German economy contracted by 2.2% in the first quarter, its steepest rate since 2009, courtesy the coronavirus pandemic-imposed lockdown.

Market reaction

The optimistic outlook on the German economy fails to rescue the EUR bulls, with EUR/USD trading flat at 1.1272, at the time of writing. The spot hit a daily high of 1.1295 and a low of 1.1263.