• HICP inflation in Germany rose sharply in October.
• EUR/USD continues to fluctuate in a tight range around 1.1600.

Inflation in Germany, as measured by the Consumer Price Index (CPI), rose to 4.5% on a yearly basis in October from 4.1% in September. This reading came in higher than the market expectation of 4.4%.

More importantly, the annual Harmonized Index of Consumer Prices (HICP), the European Central Bank's preferred gauge of inflation, climbed to 4.6% from 4.1% in the same period, compared to analysts' estimate of 4.5%.

Market reaction

This data doesn't seem to be having a meaningful impact on the shared currency's performance against its rivals. As of writing, the EUR/USD pair was down 0.08% on the day at 1.1595. Investors await European Central Bank (ECB) President Christine Lagarde's press conference.