[MARKET UPDATE] Modest hawkish reaction in EUR and Bunds on the EZ Flash HICP figures, as bets for a cooler-than-expected print following the German series unwind. The move proved fleeting with HICP at the ECB's target and the on-hold narrative maintained

• Bund Mar'26 fell from 128.22 to 128.12 before paring over the course of 15-minutes.
• EUR/USD lifted from 1.1683 to 1.1689.

The slight hawkish market reaction to the Eurozone Flash HICP figures indicates that traders initially anticipated a softer inflation print post-German data. However, with HICP at the ECB's target, this suggests that the prevailing on-hold narrative remains intact, limiting any significant movement in rates or currency. The fleeting nature of the reactions in Bunds and EUR/USD underscores the market's readiness to pivot quickly upon confirming data that align with existing expectations.