Citing a source with knowledge of the projections on Friday, Reuters reported that Germany's government sees the economy contracting by 0.4% this year in its draft autumn projections.

“The economy is then expected to grow 1.3% next year and 1.5% in 2025,” the source said.

According to the source, “inflation is expected to come in at 6.1% this year and at 2.6% next year.”

German Economy Minister Robert Habeck is set to present the government's autumn forecast on Wednesday.

Market reaction

At the time of writing, EUR/USD is holding steady at around 1.0550, awaiting the US employment data.