Germany's Bundesbank: German GDP likely fell slightly in Q4

Eren Sengezer FXStreet

In its monthly report published on Monday, Germany's Bundesbank noted that the German economy likely shrunk in the last quarter of 2021, per Reuters.

Regarding the inflation outlook, Bundesbank said that price pressures could remain exceptionally high in early 2022 due to surging energy costs.

"The adjustments in behaviour and the triggered containment measures in some cases had a significant impact on economic activity in the service sector, especially in December," the Bundesbank noted in its publication. "Germany's real gross domestic product is likely to have fallen slightly in the final quarter of 2021."

Market reaction

The EUR/USD pair remains under bearish pressure during the European trading hours and was last seen losing 0.25% on the day at 1.1310.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD regains 1.1800 and beyond on USD U-turn

The sudden bout of selling pressure on the US Dollar allows EUR/USD to leave behind the initial weakness and advance to two-day highs just above 1.1800 the figure on Friday. The pair’s jump comes as investors continue to assess the US Supreme Court ruling on Trump’s global tariffs.

GBP/USD pops above 1.3500 on weaker Dollar

GBP/USD picks up extra upside traction and reclaims the area above the 1.3500 hurdle at the end of the week. That said, Cable sets aside four daily pullbacks in a row, regaining some composure in response to the sudden bout of downside pressure hurting the Greenback.

Gold stays bid, still below $5,100/oz

Gold is extending its run higher for a third straight session on Friday, navigating the area just past the key $5,000 mark per troy ounce. The move reflects ongoing geopolitical tensions in the Middle East, renewed losses in the Greenback and rising US Treasury yields.