Italy indicates recovery signs but Euro disregards

Germany, France and the UK ofcourse are the majorly contributing to the Euro's healthy growth. Now Italy started showing strength in its recovery. The below information indicates that the Italian recovery is appeared and the GDP growth in Q1 of 2015, it is expected to reach 0.2% revolving constructive for the first time since spring 2011.

Q1 IP growth: This massive recovery in industrial sector indicates Italy no longer in recession. And it is evident in manufacturing sector data. The Italian National Statistical Institute (ISTAT) reported that industrial activity growth was positive during the winter 0.2% QoQ which is consistent with the surge in Markit's factory PMI in Q1.

Q1 PMI growth and positive projections for Q2: Service segment seems on track to post a significant rise this quarter and also probably during Q2. Indeed, virtually every indicator in Service segment of the economy points to recovery. While Markit's PMI reached 51.6 in March anything above 50 being consistent with positive growth, a number of sentiment gauges published by ISTAT (reaching levels last seen prior to the crisis) hints that the contribution to economic growth from this sector will be meaningful in Q1.

Derivatives update:

EUR-USD continued to make time in the mid-1.11s after dipping to a one-week low at 1.1130 on Monday. Yesterday's statement from the Euro group reported progress in bailout negotiations with Greece, but said that more time and effort are needed to bridge the gaps.

Put/call Ratio: As a result we saw some considerable short build ups on near and mid month's Futures contracts. While in option markets we observed that the next month's contracts have seen highest volumes (1351 contracts) and open interest (1824 adj) with highest put/call ratio of 0.64.

More open interest in puts means the market sentiment is bearish and the majority thinks the currency is going to be weaker in the future. More open interest in calls means the market sentiment is bullish and thinks the currency is going to be stronger in the future.