• Annual CPI inflation in Germany softened to 2.2% in March as expected.
• EUR/USD continues to fluctuate in a tight channel near 1.0750.

Inflation in Germany, as measured by the change in the Consumer Price Index (CPI), declined to 2.2% on a yearly basis in March from 2.5% in February, Germany's Destatis reported on Tuesday. This reading came in line with the market expectation. On a monthly basis, the CPI rose 0.4%, matching February's increase.

The Harmonized Index of Consumer Price (HICP), the European Central Bank's (ECB) preferred gauge of inflation, was up 0.6% and 2.3% on a monthly and yearly basis, respectively, in March.

Market reaction

EUR/USD showed no immediate reaction to these data and was last seen trading virtually unchanged on the day at 1.0748.