Eurozone Business Activity Unexpectedly Contracts for First Time Since Late 2024

The unexpected contraction in business activity in the Euro Zone could reignite global recession concerns. This development may reduce risk appetite and negatively impact capital flows to emerging markets. Turkish markets may also face selling pressure due to weak external demand and rising global uncertainty.

EURUSD is trading at 1.1679, down 0.07% over the past 24 hours. While the RSI at 37.9 approaches oversold territory, the MACD remains below its signal line and in negative territory, indicating weak short-term momentum. The price is trading below both the 20-day (1.1693) and 50-day (1.1712) moving averages, further weakening the technical outlook. News headlines point to an unexpected decline in Euro Zone business activity, which could pressure the euro and support a bearish bias in EURUSD. However, the RSI nearing oversold levels also raises the possibility of a short-term rebound, so the bearish expectation is expressed with moderate confidence.

The unexpected decline in Eurozone business activity could create downward pressure on EURGBP. Technically, the RSI is in neutral territory at 53, but the price is trading near the SMA20 and SMA50. Although the MACD is above zero, its approach to the signal line indicates a loss of momentum. The slight decline over the past 24 hours may also reflect this negative news. In the short term, the pair is likely to test the support level at 0.8670.

The DAX index declined 1.69% following news of an unexpected drop in Eurozone business activity. The RSI has fallen below the neutral zone to 45.8, while the MACD line remains negative and below the signal line. The price has slipped below both the 20-day and 50-day moving averages, weakening the short-term outlook. The negative sentiment from the news and deteriorating technical indicators suggest that selling pressure may persist over the next 1-3 days.