In their latest projections, the German government economic advisers cut the 2021 growth forecast to 2.7% from the March forecast of 3.1%.

Additional takeaways

“German government advisers raise 2022 growth forecast to 4.6%, up from March forecast of 4%.”

“German government advisers see inflation at 3.1% this year, 2.6% next year.”

“German government advisers see Eurozone growing 5.2% this year, 4.3% in 2022.”

Market reaction

EUR/USD was last seen trading at 1.1575, down 0.13% so far, mainly undermined by broad-based US dollar rebound ahead of the American inflation data.