Germany is facing demographic challenges with more acute structural pressures than other advanced economies. Labour-market and pension reforms are essential, but fragmented politics risk are eroding competitiveness.
Despite inflation heading below the ECB's target rate of 2% in September, core inflation — which strips out more volatile measures — still came in at 2.7%.
The US dollar index hit 14-month lows on Wednesday near 100.20. The Fed is expected to cut 25-bps rates in November and December, so market participants may price in the impact of future cuts.