The Euro passed very close to the break of its annual floor on March 7 ($1,0805) by tracing the 1,0810 Tuesday and wednesday, at the pre-wednesday time where the producer price index was published.

The "PPI" came out at +11.2% year-on-year (+1.4% in March 2022, beating a consensus that expected +1.2%) but the "PPI core" jumped 1% in March 2022 (i.e. +7% year-on-year), against a consensus of +0.5% (after +0.4% in February).

Note the sharp rise in the Canadian Dollar (+0.8% to 1.2565/$) while the Central Bank of Canada raised its key rate from +50Pts base to 1% on April 13 to fight inflation: the objective could be between 2 and 3% by the end of 2022 depending on the economic situation.

The Euro rebounded on the eve of the ECB meeting: it could be the opportunity for Christine Lagarde to confirm that inflation control remains the priority and that a cycle of rate hikes could occur as early as september, see in July as some anticipate, which will lead to a reassessment of growth targets in Europe.

The Bank of France includes this phenomenon in its forecasts: it is revising its growth target for the 1st quarter by half, from +0.5% to +0.25% (which makes the annual target of +3.6% in 2002 obsolete).

  The decline in the Dollar benefits gold which is still rising (+1.3%) and crosses the $1,980/Oz mark, silver advances by +1.5%.