In its monthly economic report published on Monday, the German central bank, Bundesbank, noted that recent data releases were better overall than assumed in the December projections.

"Gross domestic product growth is likely to have roughly stagnated in the final quarter of 2022, exceeding earlier expectations," the Bundesbank added and said that the economy was proving more resilient than expected amid easing stress on energy markets.

Market reaction

EUR/USD showed no immediate reaction to these comments and was last seen trading slightly below 1.0900, where it was up 0.35% on a daily basis.