Comments by Germany's central bank in its monthly report for June
- Economy should rebound in spring after weak Q1
- Sees private consumption growth as an important growth driver for the economy
- Overall pace of growth unlikely to match the high growth rates of the past year
- Special factors played a key part in Q1 growth slowdown
- "Difficult to estimate" the impact of those factors in Q2
- Inflation in coming months expected to remain at a level close to 2.2% (May reading)
I like how they attributed the slowdown seen in Q1 to "special factors". They didn't talk much about their revisions to the 2018 growth forecast from last Friday though. But they continue to highlight positive developments by pointing towards strong domestic growth as a favourable item to continue driving the economy.
The issue that remains though is that of exports/trade and manufacturing. Nonetheless, not a report that will move the market but it paints a picture on expectations from Eurozone officials.
EUR/USD now trades at the 1.1600 handle after falling to a low of 1.1566 earlier. EUR/GBP is also a little higher on the day now at 0.8753.
