Fitch: German authorities reluctant to launch sizeable fiscal stimulus package

Weaker economic growth and pressures to increase public spending will make debt reduction harder for highly indebted Western European sovereigns, Fitch Ratings said in a recently-published report on Thursday.

"Prospect of low interest rates for longer and additional quantitative easing will support debt dynamics in Western European sovereigns," the publication read. "Despite an intensifying policy debate, we do not yet believe that a large-scale German fiscal easing package in prospect in the near-term. German authorities appear reluctant to launch a sizeable fiscal stimulus package."

The EUR/USD pair hasn't yet shown any reaction to these remarks and was last seen moving sideways in a tight range above the 1.10 handle.