Euro Slips as Bundesbank Warns Germany’s Economy May Slow

Germany’s Bundesbank said that the growth of the nation’s gross domestic product can lose momentum, signaling that the major European economy isn’t as strong as was considered before and sending the euro tumbling down.

The Bundesbank said today in its monthly bulletin that “growth is likely to ease somewhat in the foreseeable future” and that the 1.5 percent GDP growth in the first quarter of this year “considerably overstates the underlying economic momentum. Output growth was clearly lifted during the reporting period by backloading and catching-up effects.” Germany is considered the strongest economy of the European Union and the prospect of its weakening doesn’t make the euro any stronger.

EUR/USD slid from 1.4308 to 1.4229 today as of 11:57 GMT following the advance to 1.4345.

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