Germany’s KfW: Economy to shrink by 10-15% in Q2

Germany’s KfW state development bank said on Thursday, the economy is likely to contract by 10% to 15% in Q2 2020, as the coronavirus outbreak placed Europe’s economic powerhouse in virtual lockdown.

The bank’s Chief Finance Officer (CFO) said that despite higher volume of funding, don't see risks for our refinancing this year.

Meanwhile, Germany’s Handelsblatt newspaper stated that the heads of Volkswagen, BMW and Daimler held crisis call with Chancellor Angela Merkel on Wednesday.

Further details

Discussed how to get the sector out of standstill in call with Markel.

Participants in call as saying carmakers are particularly concerned about supply chain.

EUR/USD reaction

The bearish pressure around the EUR/USD pair remains unabated so far this Thursday, as the bears eye a break below 1.0900 amid broad US dollar strength.