Germany’s Economy Ministry said in its monthly report on Friday, the economy faces "significantly poorer prospects" in the second half of the year due to reduced gas deliveries, increases in energy prices, supply chain issues and general uncertainty.

Despite, the dire economic outlook, Germany's 10-year yield, the benchmark for the euro area, rose above 1% for the first time since July 28.

Meanwhile, money markets continue to price in a full probability of a 50 bp hike in September.

At the time of writing, EUR/USD is trading at 1.0296, down 0.19% on the day.