Inflation in Europe at 3-Year High: ECB's December Decision Awaited

Inflation in Europe rising to a 3-year high increases the likelihood that the ECB will adopt a more hawkish stance at its December meeting. This could suppress global risk appetite and create selling pressure in equity markets. In emerging markets such as Turkey, expectations of tighter global liquidity conditions may create short-term pressure on the Turkish lira and local assets. However, as the ECB's communication becomes clearer, reduced uncertainty could limit market volatility in the medium term.

Inflation rising to a three-year high in Europe increases the likelihood that the ECB will adopt a more hawkish stance at its December meeting, which is a supportive factor for EUR in the short term. Technical indicators also confirm the upside: the price is above the SMA20 and SMA50, MACD is above its signal line, and momentum is positive. However, RSI14 at 71 is close to overbought territory, suggesting the upward move may be limited. Uncertainty persists because the news impact largely depends on expectations for the ECB's December decision. I therefore expect a moderate upward bias, but additional confirmation is needed for a strong breakout.