A signal processing arrangement, comprising - a first and a second signal input for receiving a first and a second input signal (CH_SIN, CH_COS) associated with a rotating object; - a first and a second amplitude processing block (101a, 101b) connected to the first and the second signal input, the first and the second amplitude processing block (101a, 101b) each having an adjustable gain; - a trigonometric processing block having a first and a second input coupled to outputs of the first and the second amplitude processing block (101a, 101b) via respective first and second signal paths, the trigonometric processing block being configured to determine a magnitude value and a phase value based on signals at its first and second inputs; - a first compensation block being configured - to store a value of the signal at the first input of the trigonometric processing block as a first peak value, when the phase value assumes a first phase reference value; - to store the value of the signal at the first input of the trigonometric processing block as a second peak value, when the phase value assumes a second phase reference value; - to determine a first peak amplitude value based on a difference between the stored first and second peak values; - to determine a first amplitude error based on a difference between the magnitude value and the first peak amplitude value; - to determine a first gain value by applying a first regulation function to the first amplitude error; and - to adjust the gain of the first amplitude processing block based on the first gain value; and - a second compensation block being configured - to store a value of the signal at the second input of the trigonometric processing block as a third peak value, when the phase value assumes a third phase reference value; - to store the value of the signal at the second input of the trigonometric processing block as a fourth peak value, when the phase value assumes a fourth phase reference value; - to determine a second peak amplitude value based on a difference between the stored third and fourth peak values; - to determine a second amplitude error based on a difference between the magnitude value and the second peak amplitude value; - to determine a second gain value by applying a second regulation function to the second amplitude error; and - to adjust the gain of the second amplitude processing block based on the second gain value. - a first and a second signal input for receiving a first and a second input signal (CH_SIN, CH_COS) associated with a rotating object; - a first and a second amplitude processing block (101a, 101b) connected to the first and the second signal input, the first and the second amplitude processing block (101a, 101b) each having an adjustable gain; - a trigonometric processing block having a first and a second input coupled to outputs of the first and the second amplitude processing block (101a, 101b) via respective first and second signal paths, the trigonometric processing block being configured to determine a magnitude value and a phase value based on signals at its first and second inputs; - a first compensation block being configured - to store a value of the signal at the first input of the trigonometric processing block as a first peak value, when the phase value assumes a first phase reference value; - to store the value of the signal at the first input of the trigonometric processing block as a second peak value, when the phase value assumes a second phase reference value; - to determine a first peak amplitude value based on a difference between the stored first and second peak values; - to determine a first amplitude error based on a difference between the magnitude value and the first peak amplitude value; - to determine a first gain value by applying a first regulation function to the first amplitude error; and - to adjust the gain of the first amplitude processing block based on the first gain value; and - a second compensation block being configured - to store a value of the signal at the second input of the trigonometric processing block as a third peak value, when the phase value assumes a third phase reference value; - to store the value of the signal at the second input of the trigonometric processing block as a fourth peak value, when the phase value assumes a fourth phase reference value; - to determine a second peak amplitude value based on a difference between the stored third and fourth peak values; - to determine a second amplitude error based on a difference between the magnitude value and the second peak amplitude value; - to determine a second gain value by applying a second regulation function to the second amplitude error; and - to adjust the gain of the second amplitude processing block based on the second gain value.