Germany's Bundesbank released its monthly report on Tuesday. The central bank said that Germany's economy was expected to lose momentum in spring.

"The consistently upbeat labour market, rising income expectations along with stable prices will keep consumption activity buoyant, they write, but the unlikely prospect of a further drop in oil prices leads them to believe that the sizeable purchasing power gains in the past two quarters will dwindle," the report said.

"The solid underlying cyclical trend would probably remain intact into the second quarter," Bundesbank added.