Reuters is reporting that a German economic research Inst. is expected to announce that lackluster consumer sentiment will lead to a recession in Germany.

  • Forecast calls for GDP to dip to -0.2% in Q3 and -0.4% in Q4 and -0.4% in Q1 2023
  • expects modest growth thereafter in 2023
  • consumption will only start to recover next summer

In other European news Italy cut its 2023 GDP forecast to 0.6% from 2.4% as a result as result of surging energy costs.

The EURUSD is trading at 0.9693. The high just reached 0.97077. That was just short of the topside target at 0.9708 which was the high of a swing area going back to June/October 2002 between 0.9662 and 0.9708. THe 100 hour moving average is currently at 0.9671