Euro Zone PMI Contraction Signals Supply Pressure

The PMI contraction in the Euro area indicates tightening in production and increasing supply pressures. This situation could trigger short‑term selling pressure in European equity markets. In Turkey, rising commodity prices are adding to inflationary pressure, potentially pointing to higher interest rates, which could negatively affect equities. Overall, markets are expected to see a modest decline.

The contraction in the Euro Zone PMI signals an economic slowdown in the region. This could reduce GS's credit demand in the Euro Zone and negatively affect its profitability. Technical indicators also support a downward trend: the MACD is below the signal line, the RSI hovers around neutral at 48, and price remains flat at the SMA20/50 levels. A short‑term negative impact (1–3 days) is expected.

The contraction in the Euro Zone Purchasing Managers' Index underscores weakness in the manufacturing sector and supply pressures, which could exert short‑term pressure on the euro. A 24‑hour gain of 0.26% and an RSI hovering around 64 do not signal an overbought market; however, negative news could pull the price toward the 1.1705‑1.1710 range. The MACD’s modest positive value and the close proximity of the SMA20 and SMA50 suggest that the short‑term trend remains bullish, but the PMI effect may weaken it. Within 1‑3 days, the euro may find support near 1.1700 and then retreat to the 1.1650‑1.1680 band. This move, combined with investors’ risk‑aversion, could lead to a modest decline in the EURUSD in the near term.

The contraction in the Euro Zone Purchasing Managers' Index (PMI) indicates a weakening of the region’s economy, potentially creating short‑term upward pressure on the U.S. Dollar Index (DXY). However, technical indicators suggest the current trend remains weak: the price is trading below both the 20‑ and 50‑day moving averages, and the MACD is negative. The RSI hovers around 35, which, while not in an oversold zone, implies that buying pressure may be limited. Consequently, the DXY could move both upward and downward over the next one to three days, but additional news developments will be required to determine a clear direction.