• Inflation in Germany rose at a stronger pace than expected in June.
• EUR/USD continues to stretch higher toward 1.0950 after the data.

Inflation in Germany, as measured by the change in the Consumer Price Index (CPI), rose to 6.4% on a yearly basis in June from 6.1% in May. This reading came in higher than the market expectation of 6.3%. On a monthly basis, the CPI increased 0.3% following May's 0.1% decrease.

The annual Harmonised Index of Consumer Prices (HICP), the European Central Bank's (ECB) preferred gauge of inflation, jumped to 6.8% in the same period, compared to 6.3% in May and analysts' estimate of 6.7%.

Market reaction

EUR/USD extended its rebound with the initial reaction and was last seen rising 0.25% on the day at 1.0940.