The Bank of France announced on Tuesday that it cut the growth forecast for 2022 to 2.3% from 3.4%. In 2023, the central bank expects the French economy to expand by 1.2%, compared to 2% in its previous forecast.

The Bank of France raised its inflation outlook to 5.6% in 2022 and to 3.4% in 2023, from 3.7% and 1.9%, respectively. 

Market reaction

EUR/USD lost its traction and erased a portion of its daily gains after this report. As of writing, the pair was trading at 1.0530, where it was still up 0.2% on a daily basis.