Germany’s Economy Ministry said in a statement on Friday that the “government expects recession spanning three quarters in a row, starting in Q3 2022.”

“Economic indicators suggest the German economy is facing a difficult winter,” the Ministry added.

Market reaction

EUR/USD is extending losses below 0.9750, in the face of the renewed US dollar strengh and jittery market environment. The spot is down 0.23% on the day. The US Retail Sales and Consumer Sentiment data are awaited for fresh trading opportunities in the main currency pair.