Bundesbank report: German economy continues to expand at a very high rate

Germany's central bank releases their monthly report

• However, growth rate in last quarter may have been slightly lower
• But the fundamentally strong and broad-based economic upturn will not be impaired
• Industrial orders and labour market environment are just as excellent as sentiment among companies and consumers
• Jump in inflation from 2016 (0.4%) to 2017 (1.7%) was mainly because of price trend of energy
• In current year, contribution of energy to overall inflation likely to be low
• Price growth should be reinforced by increasing macroeconomic over-utilisation

The usual positive tones on the German economy from the report, though they did try and temper down inflation expectations a little.

EUR/USD not really moving on the report, now at 1.2260 and EUR/GBP still at 0.8819.