"The German economy did better in the first quarter of 2023 than expected a month ago and activity is likely to have picked up again somewhat," Germany's Bundesbank said in its monthly report published on Monday.

"Industry recovered more strongly than expected," the Bundesbank further noted and added that high employment in Germany should keep supporting consumer activity. 

In its publication, however, the German central bank also acknowledged that the outlook was still mixed with inflation still weighing on consumption.

Market reaction

EUR/USD clings to modest daily gains a few pips above 1.1000 on Monday.