Good morning,

German GDP year on year has beaten the Covid downgrading and recovered by -4.1%, versus the expected -5.2%.

German quarterly GDP has grown to +8.2% versus -9.8% in the prior quarter.

Eurozone GDP is also due out this morning with similar expectations around recovery, hence the positive move in EURGBP strength.

EURUSD remains unchanged, but with a stronger dollar being felt, the market is not far off the September low of 1.1613.

Commerzbank have commented that they see a weaker EURUSD heading into the year-end. Their ECB analysts predict a further deposit rate cut to -0.6%, alongside other measures. As mentioned yesterday, the increase in European Covid cases will likely force the ECB’s hand into providing the relevant financial support for each economy.

Have a great weekend.

Author: Alistair Hutson, Head of Relationship Management

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