Germany's inflation rate came in slightly higher than expected in March, touching its lowest level in three years. Additionally, Germany's HICP increased by 0.6% month-on-month (MoM) in March, slightly lower than anticipated, which was expected to rise by 0.7%.

The softer inflation figures bring the eurozone closer to the European Central Bank's (ECB) 2% target, increasing market expectations of a near-term interest rate cut. This could exert downward pressure on the euro as well.

Robert Holzmann, one of the policymakers at the ECB, stated, "I do not dispute a rate cut decision in June, but we should wait for additional data before making a decision."