The German economy ministry was out with some comments in the last hour and said that the economic recovery will be gradual through the second half of 2020.
- Easing of lockdown suggests we have passed economic trough.
- Expect Q2 economic output to decline much more sharply than in Q1.
- Recession likely bottomed out in April.
- Leading indicators do not point to a sustainable recovery in labour market.
- Exports likely to pick up from May but we expect a significant decline in German exports and imports in 2020 as a whole.
Meanwhile, the comments did little to influence the shared currency. In fact, the EUR/USD pair extended its sideways consolidative price action and remained confined in a range near mid-1.1200s.