Eurozone Inflation Rises to 3.2% Due to Iran War

The rise in Eurozone inflation to 3.2% due to the Iran war could negatively impact global risk appetite. Rising energy and commodity prices weaken expectations for interest rate cuts by the European Central Bank while increasing recession concerns. This could create selling pressure on global equities, including emerging markets. In energy-importing countries like Turkey, current account deficit and inflation risks may rise, putting pressure on Turkish lira-denominated assets.

The rise in Eurozone inflation to 3.2% could weaken expectations for ECB rate cuts and create short-term pressure on the EUR. Technically, EURUSD is trading just below the 50-day SMA (1.1648), with the RSI at 52 in neutral territory. The MACD is near the zero line and attempting to stay above the signal line, but momentum is weak. Selling pressure may emerge due to the news, but the decline is likely to be limited.

Brent crude oil is exhibiting a technically weak outlook. The price is trading below its 20-day and 50-day moving averages, while the RSI stands at 40, indicating sustained selling pressure. The MACD line remains below the signal line and in negative territory, suggesting bearish short-term momentum. Rising inflation, as highlighted in recent headlines, could further pressure oil prices by dampening demand. However, geopolitical risks such as the Iran conflict should not be overlooked, as supply disruption concerns could potentially drive prices higher.

WTI crude oil is trading at $90.41, down 0.43% in the last 24 hours. The RSI stands at 43.23, indicating weak momentum, while the MACD remains below the signal line. Although the SMA20 ($92.10) is above the SMA50 ($90.13), the price is trading below the SMA20. Rising Eurozone inflation to 3.2% due to the Iran conflict may heighten demand concerns and weigh on oil prices. The short-term trend could remain bearish, with the SMA50 level ($90.13) acting as key support.