Data-wise, the most prominent fresh statistics of this week are due on Friday with the April flash PMIs for the euro area, Germany and France all set to give one of the 1st hints of the strength of economic activity in the current month, Italian retail sales on the other corner on the same day.

Following a quiet beginning to the week with upbeat German’s ZEW investor sentiment survey flashed today at 11.2 versus forecasts at 8.2 and previous flashes at 4.3.

No top-tier releases scheduled for release today, the rather mixed bag of other data include - in the euro area’s current account balance at 11.2B euros for February and construction output data (MoM) at -1.1%

ECB quarterly bank lending survey suggests that they seem to be quite satisfied with survey data released Tuesday, which shows that some of its most ambitious policies are having a positive impact on bank lending in the currency bloc, though they are hurting banks’ profitability,

The French INSEE business sentiment survey scheduled for April (on Thursday)

February’s Italian industrial sales and orders and retail sales figures (Friday).

In the bond markets, Germany will sell 10Y Bunds on Wednesday, while France and Spain will sell bonds on Thursday.

While, ECB’s monetary policy meeting on Thursday. The recent communications from ECB have continued to send strongly dovish signals.

As a result of above significant economic news, let's glance over what is happening in the Euro's OTC FX markets.

The implied volatilities of all euro crosses for 1W contracts have reduced.

The ATM contracts of major euro crosses of 1W expiries are likely to perceive IVs below to 10% and EUR/CHF below 5%.

But on the other hand, the OTC options market for euro appeared to be more balanced on the direction for the pair over the 1m to 1y time horizon as hedgers have been cautious on long term trend direction.

The delta risk reversals have been inert with spot FX market sentiments. This reveals no change in hedging sentiments in the OTC market.  

From the nutshell, 25-delta risk of reversals of euro crosses have been neutral with their existing sentiments.