Germany’s central bank seems optimistic about economic recovery in Q3

The German economic recovery is likely to accelerate in the third quarter of 2021 if the coronavirus pandemic does not create "significant setbacks", the country’s central bank, Bundesbank, said in its monthly report published Monday.

Key highlights (via EurActiv)

“If the conditions were maintained, Germany would achieve pre-pandemic levels of real GDP.”

“The significant growth of the German economy in the second quarter thanks to the resurgence of the service industry.”

“The construction sector has also seen a boost, despite massive price hikes for building materials.”

“The car manufacturing industry, however, has been struggling as supply shortages have resulted in significant loss of turnover and massive delays.”

Market reaction

EUR/USD is meandering near daily lows of 1.1779, undermined by a broadly firmer US dollar and risk reset, despite looming Delta covid strain fears.

The spot was last seen trading at 1.1783, down 0.11% on a daily basis.