Germany's Ifo Institute announced on Monday that it revised its 2023 growth forecast to -0.3% from 3.5% in June. The institute further noted that the annual inflation expectation for 2023 got revised higher to 9.3% from June's forecast of 6%.

For 2022, Ifo now sees the economy growing by 1.6%, down from 2.5% in June, and forecasts 8.1% inflation (6.8% in June), as reported by Reuters.

Market reaction

EUR/USD pair retreated from the multi-week high it set at 1.0198 after this report. Nevertheless, the pair was last seen trading at 1.0140, where it was still up 1% on a daily basis.