Posted on May 3, 2022 We ended the week with the inflation data for the Euro Zone at maximum levels, reaching 7.5% in the month of April and with prices driven by the CPI in Germany and France. The yield curve continues to rally to record highs and the German bond is approaching the key resistance level at 1%, closing yesterday, a holiday in various parts of Europe, at 0.97%. Retail sales in Germany during the month of March presented a year-on-year growth of -2.7%, very far from the figure for the previous month (7%), being the first drop since October 2021 due to the effect of the war between Russia and Ukraine. We continue to hear hawkish comments from members of the European Central Bank, with De Guindos noting that the situation is not comparable to 2012 and that they do not currently see tensions in the market. The key elements of last week, inflation and GDP, are likely to lead the ECB Governing Council to take policy tightening measures despite a weak growth outlook. The data project a takeoff in September, with July as the month of risk, although in some surveys it is expected that by the end of 2023 it will reach 1.25%. The Eurogroup is meeting today, which will be attended by ECB President Christine Lagarde, in addition to the FED meeting, which we will also have this week. In the Foreign Exchange Market, during yesterday’s Monday the price of the EUR/USD pair moved in a range of 1.0503-1.0568 to end up closing the session in European time at levels of 1.0526. The euro appreciated against the pound sterling and the Swiss franc to 0.8408 and 1.0277, respectively at the close. The community currency timidly depreciated against the Japanese yen to levels of 136.83. INFORMATIONTitleInflation and GDP, key data of the week in EuropeDescriptionWe end the week with the inflation data for the Eurozone at maximum levels, reaching 7.5% in April and with prices driven by the CPI in Germany and France.Author GLOBALCAJA