The recent discovery of a modified low temperature baking process lead to a reduction of surface losses and an increase of the accelerating gradient of TESLA shape cavities. The hypothesis linking the accelerator performance and the treatment is the suppression of lossy nanohydrides via defect trapping, with vacancy-hydrogen complexes forming at the lower temperatures. Utilizing Doppler broadening Positron Annihilation Spectroscopy and Positron Annihilation Lifetime Spectroscopy samples made from European XFEL niobium sheets and cavity cut-outs were investigated. The evolution of vacancies, hydrogen and their interaction at different temperature levels have been studied during in-situ annealing. Measurements of niobium samples and a correlation between RF, material properties, and V-H distribution in cavity cut-outs has been done.