Headlines from ISTAT:

  • GDP likely to show weak growth across whole of 2014
  • GDP seen between -0.1% and +0.3%
  • There are still no clear signs that deflationary risk is receding in Italy

The consensus on Italian growth is +0.3% so the downside risks are mounting but EUR/USD is still near the highs of the day as it flirts with 1.3700. Quarter-end US dollar selling is dominating.