European Central Bank Prepares for June Rate Hike

The European Central Bank's preparation for an interest rate hike could negatively impact global risk appetite. This may accelerate capital outflows from emerging markets, creating selling pressure in Turkish markets. In the short term, the BIST 100 index and Turkish lira-denominated assets could see depreciation. However, the severity of the impact may vary depending on the policies pursued by the Fed.

EURUSD is trading in overbought territory above the RSI 70 level, increasing the likelihood of a short-term correction. Although expectations of an ECB rate hike generally support the Euro, the fact that this news may already be priced in, combined with current technical indicators signaling overbought conditions, could create selling pressure. While the MACD line remains above the signal line, indicating a positive outlook, the elevated RSI levels and the price trading above short-term averages point to a risk of a short-term pullback. Therefore, a downward movement in the short term can be expected following the news.

The DAX index has fallen 3.2% in the last 24 hours to 24,308, with the RSI at 35.6, approaching oversold territory. The MACD indicator remains below the signal line and in negative territory, confirming weak momentum. The price is trading below both the 20-day (24,665) and 50-day (24,514) moving averages. News that the ECB may raise interest rates in June could further dampen already fragile market sentiment. In the short term, the downtrend is expected to continue, but a potential corrective rally cannot be ruled out given the proximity to oversold conditions.

The CAC index has declined 2.5% over the past 24 hours to the 8100 level. Although the RSI at 36.7 is approaching oversold territory, the MACD remains below the signal line and in negative territory. The price is trading below both the 20-day (8216) and 50-day (8146) moving averages. News that the ECB is preparing for an interest rate hike could further dampen already weak market sentiment. In the short term, selling pressure is likely to persist, with the index potentially retreating toward the 8000 support level.