Germany expects 2020 contraction won’t be as severe as feared – Bloomberg

The German government forecasts is expected to show that the economic blow due to the coronavirus pandemic this year is likely to be less severe than previously expected, Bloomberg reports, citing a person familiar with the updated outlook to be published Tuesday.

Additional points

“Germany predicted in April that the economy would contract by 6.3% in 2020, it's worst recession since the nation began a recovery after World War II, before rebounding with a growth of 5.2% next year. 

The German government will revise up its forecast for 2020 gross domestic product to a decline of less than 6

It will also revise down its growth prediction for next year.”

EUR/USD consolidates the upside

EUR/USD consolidates the advance to multi-year highs of 1.1998, as the US dollar continues to remain on the back foot amid the upbeat market mood.

At the press time, the major adds 0.29% to trade at 1.1968, digesting the below-estimate Spanish final Manufacturing PMI.