EUR/USD in Focus as Final German GDP and Eurozone CPI Data Released

EUR/USD faces a pivotal European session as traders digest final readings of two key economic releases: German Q4 GDP and Eurozone CPI. The preliminary German Q4 GDP report had surprised to the upside with 0.3% quarter-over-quarter growth, beating market expectations and signaling resilience in Europe's largest economy. Meanwhile, the preliminary Eurozone CPI data showed headline inflation at 1.7% year-over-year, remaining below the European Central Bank's 2% target, while core CPI printed at 2.2% year-over-year, indicating persistent underlying price pressures. The divergence between subdued headline inflation and firmer core readings complicates the ECB's monetary policy outlook, as markets assess the pace of potential rate adjustments. Any upward revisions in the final CPI figures could provide a modest tailwind for the euro, while downward revisions may reinforce expectations of further ECB easing. Traders should monitor whether these final prints deviate from preliminary estimates, as surprises in either direction could trigger short-term volatility in EUR-denominated pairs during the session.