EUROPEAN SESSION In the European session, we have a rare busy agenda today.
EUROPEAN SESSION In the European session, we have a rare busy agenda today. We will begin with the French CPI report which is expected to show another uptick in inflation due to the ongoing energy crisis.
The data won’t change anything for the ECB at this point though. After that, we will get the Spanish, German and Eurozone Q1 GDP reports. These are not going to matter much as the ECB is focused more on inflationary pressures at the moment.
The most important report is going to be the Eurozone Flash CPI for April. Headline inflation is expected to 3.0% vs 2.6% prior, but Core CPI is seen unchanged at 2.3%. The ECB has already pre-committed to a rate hold at today’s meeting, so the data isn’t going to change that, but an increase in core inflation will likely make them even more uncomfortable given the recent jump in inflation expectations.