• CPI Inflation in Germany continued to soften in October.
• EUR/USD climbed above 1.0600 with the immediate reaction.

Inflation in Germany, as measured by the change in the Consumer Price Index (CPI), declined to 3.8% on a yearly basis in October from 4.5% in September. This reading came in below the market expectation of 4%. On a monthly basis, the CPI was unchanged.

The annual Harmonised Index of Consumer Prices (HICP), the European Central Bank's (ECB) preferred gauge of inflation, rose 3% in the same period, compared to 4.3% in September and the market forecast of 3.6%. Monthly HICP decreased 0.2%.

Market reaction

EUR/USD gained traction with the immediate reaction and was last seen rising 0.42% on the day at 1.0608.