Deutschland consumer sentiment reflects in manufacturer’s index

German PPI MoM (Producers Price Index) is printed at 0.1% which is in line with the forecasted figure as reported by the Federal Statistical Office.

PPI in Germany was decreased 1.70% in March of 2015 over the same month in the previous year.

Producer Prices in Germany increased to 104.40 index points in March of 2015 from 104.30 index points in February of 2015.

Inflation continued to rise at 0.5% in April

German's GDP slowed at 0.3% in Q1.

On the whole, Germany has been posting mixed bag of economic numbers but yet to join hands with Italy and France who are leading Euro from the front.

Currency hedging with OTM Put instruments:

As shown in the figure both At-The-Money and In-The-Money rates in EURUSD put option seems costlier. One looks expensive and the other calculates high delta at 60481.82 when exchange rate becomes In-The-Money.

We reckon EURUSD put with delta at this figure could be expensive as one can prefer alternative for hedging which is Futures. Although we foresee further slumps in this pair we recommend avoiding ATM & ITM puts at this juncture bears have already utilized the downswings optimally.