The German economy appears to have bottomed out and is forecast to post a small growth in the Gross Domestic Product (GDP) in the second quarter, Germany's Bundesbank said in its monthly report published on Monday.

Regarding the inflation outlook, German central bank noted that inflation rate is expected to slow further in coming months but added that price pressure are likely to remain very high.

"Thanks to strongly rising wages, the real disposable incomes of private households are stabilising despite inflation remaining very high," the report further read.

Market reaction

EUR/USD edged higher following this publication and was last seen trading a few pips above 1.0900.