Germany's April Inflation Falls Below Expectations

German inflation coming in below expectations is strengthening expectations that the European Central Bank may begin its interest rate cutting cycle earlier. This could have a short-term positive impact on emerging markets and countries like Turkey by boosting global risk appetite. However, inflation remaining at elevated levels and geopolitical risks may limit optimism. Markets will monitor the ECB's signals at upcoming meetings more closely.

Germany's April inflation coming in below expectations could strengthen expectations for an ECB rate cut and increase risk appetite. Technically, the DAX is trading above its 20- and 50-day moving averages, with the RSI at 63, not yet approaching overbought territory. The MACD line is above the signal line and in positive territory, indicating that short-term upward momentum continues. However, after a 1.38% rise in the last 24 hours, the possibility of short-term profit-taking should not be ruled out.

German inflation coming in below expectations could reinforce expectations of an interest rate cut by the European Central Bank and put pressure on the EUR. Technically, EURUSD is trading below the 50-day moving average (1.1711), with the RSI at 49 in neutral territory. The MACD remains below the signal line, confirming weak momentum. In the short term, a break below the support at 1.1695 (20-day SMA) could accelerate the decline. However, the downside may be limited, as the market may have already partially priced in these expectations.

The EUR/TRY pair is technically moving sideways. The RSI is near the 50 level and the MACD is close to the zero line, indicating no clear directional signal. The price is trapped between the 20-day and 50-day moving averages. Germany's inflation coming in below expectations could put slight pressure on the EUR, but due to the structural sensitivity of the TRY, no significant movement in the pair is expected. In the short term, fluctuation within the 52.85-52.95 range is highly likely.