• Annual CPI in Germany fell more than expected in November.
• EUR/USD continues to trade in positive territory slightly below 1.0400.

Inflation in Germany, as measured by the Consumer Price Index (CPI), declined to 10% on a yearly basis in November from 10.4% in October. This reading came in lower than the market expectation of 10%. On a monthly basis, the CPI declined 0.5%.

Meanwhile, the Harmonised Index of Consumer Prices (HICP), the European Central Bank's (ECB) preferred gauge of inflation, edged lower to 11.3% on a yearly basis, as expected.

Market reaction

These figures failed to trigger a noticeable market reaction and the EUR/USD pair was last seen rising 0.42% on the day at 1.0380.