Following the German growth downgrade by the German Kiel Institute for the World Economy (IfW) and DIW economic institute on Wednesday, the IFO lowered its 2019 GDP growth forecast for the German economy.
Sees German economy in recession in Q3 with 0.1% contraction.
Cut 2020 GDP forecast to 1.2% from 1.7%.
Sees 2021 GDP at 1.4%.
German industry's weakness spreading to other sectors.
The forecast assumes there is no disorderly Brexit, no escalation of trade war.
The bid tone around the EUR/USD pair continues to strengthen ahead of the ECB policy decision, with the Euro unfazed by the latest German IFO growth downgrade.
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