German Finance Ministry: Weak global economy and economic uncertainties are slowing German economy

German Finance Ministry’s September month report portrays a dovish picture of the Eurozone’s largest economy.

Key quotes

“German economy started the third quarter on a weaker footing.”

“Weak global economy and economic uncertainties are slowing German economy.”

“Continued contraction in industrial production.”

“No sign that negative trend in German exports is going to change.”

“Labour market getting impetus from services sector, but growth in employment on the whole is slowing down.”

FX implications

Although the Euro (EUR) failed to reach much to the news, mainly due to market’s heavy emphasis on Antipodeans during the early Asian session, such headlines are likely to weigh on the regional currency amid the initial European session.