German Economy Ministry: Economic outlook for H2 dramatically worsened

Dhwani Mehta FXStreet

The latest report published by the German Economy Ministry on Tuesday underscored concerns over the country’s economic outlook in the second half of this year.

Key takeaways

Early indicators and polls point to a rising number of insolvencies in H2 but no "insolvency wave" in sight.

German economic outlook for H2 dramatically worsened, output in H2 could stagnate or contract.

German labor market is defying global uncertainties for time being, indicators have stabilized and demand for labor remains high.

Market reaction

The shared currency is undeterred by Germany’s dire economic outlook, as EUR/USD flirts with highs near 1.0150, up 0.31% on the day.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

GBP/USD recovers to 1.3450 region, looks to post weekly gains

EUR/USD stays below 1.1450 after US data

Gold rebounds from July lows, struggles to reclaim $4,000

CLARITY Act approval odds sink fast ahead of Congressional hearing

The United States (US) House Financial Services Committee’s Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence (AI) is holding a hearing titled “Building the Future of Finance: How the CLARITY Act Unlocks Innovation” on Friday.

Week ahead – Could technology earnings revive equities as geopolitical risks linger?

Oil prices rise, but the dollar posts losses as Middle East tensions persist. US earnings, the ECB and UK newsflow dominate next week’s agenda. US equity markets face a pivotal test as focus shifts to technology earnings.

-0.4%: Why the biggest CPI drop since 2020 couldn't buy back a single cut

The June CPI fell 0.4% on the month, the largest one-month decline since April 2020, dragging the annual rate to 3.5% from May's 4.2% and snapping a three-month acceleration streak. Core prices went nowhere, flat on the month and down to 2.6% YoY, both under consensus.