In its latest report, the German Economy Ministry said that it expected a significant GDP increase in the third quarter of this year, courtesy of the growth in the services sector.

Additional takeaways

“Economic development could proceed sideways in Q4.”

“Bottlenecks in raw material delivery may keep hurting the industry in coming months.”

Separately, the German economic institutes cut the 2021 growth forecast to 2.4% from the 3.7% previous estimate.

Meanwhile, the country’s highly influential institutes raised the 2022 GDP growth forecast from 3.9% to 4.8%.

Market reaction

EUR/USD is extending its recovery above 1.1600, as the US dollar accelerates its corrective pullback amid a negative turn in the Treasury yields across the curve.

The spot remains unfazed by the above headlines, as it trades at 1.1619, up 0.24% on the day, at the press time.