Germany expects 2020 contraction won’t be as severe as feared – Bloomberg

Dhwani Mehta FXStreet

The German government forecasts is expected to show that the economic blow due to the coronavirus pandemic this year is likely to be less severe than previously expected, Bloomberg reports, citing a person familiar with the updated outlook to be published Tuesday.

Additional points

“Germany predicted in April that the economy would contract by 6.3% in 2020, it's worst recession since the nation began a recovery after World War II, before rebounding with a growth of 5.2% next year.

The German government will revise up its forecast for 2020 gross domestic product to a decline of less than 6

It will also revise down its growth prediction for next year.”

EUR/USD consolidates the upside

EUR/USD consolidates the advance to multi-year highs of 1.1998, as the US dollar continues to remain on the back foot amid the upbeat market mood.

At the press time, the major adds 0.29% to trade at 1.1968, digesting the below-estimate Spanish final Manufacturing PMI.

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: Gains remains capped below 1.3400

GBP/USD trades in positive territory, with the upside capped below 1.3400 in the European session on Friday. The US Dollar extends weakness following a weaker-than-expected US Nonfarm Payrolls report, which fades Fed rate hike expectations.

EUR/USD stays firm around 1.1450 amid weaker US Dollar

EUR/USD remains on the front foot at around 1.1450 in European trading on Friday. The pair seems poised to register gains for the first time in three weeks as receding US Federal Reserve rate hike bets keep the US Dollar under pressure.

Gold advances to $4,200 neighborhood amid reduced Fed hike bets

Gold is seen building on this week's recovery move from its lowest level since November 2025 and gaining positive traction for the third straight day. The precious metal advances to the $4,200 neighborhood, or a one-and-a-half-week high, during the Asian session and remains on track to register gains for the first time in five weeks.

Hyperliquid gears up for a higher leg as bullish momentum resurfaces

Hyperliquid (HYPE) extends gains above $66 maintaining a long-term upward trend supported by its rising 50-day EMA around $60. Retail demand for HYPE rises in the near term, with Open Interest up around 5% over 24 hours as funding rates hold above zero, while institutional demand remains muted so far this week.

Economics week ahead

Market attention turns to next week's FOMC minutes for any signs of what could shift a divided Committee from a hold toward rate hikes. The dot plot from the last meeting made clear that policymakers are split on whether rate hikes are warranted, but with forward guidance getting tamped down under Chair Warsh, the Fed's reaction function remains uncertain in terms of what exactly would build broader support for more restrictive policy.

Kevin Warsh offers no policy clues: Why markets still got their answer

Financial markets came to Sintra looking for clues about the Federal Reserve's (Fed) next move. They largely left with confirmation that Fed Chair Kevin Warsh intends to make those clues much harder to find.