Eurozone Inflation Rises to 4% in October

In the Eurozone, inflation rising to 4% could strengthen expectations of ECB rate hikes and weigh on global risk appetite. Selling pressure may be seen in European equity markets and upward movement in bond yields. In emerging markets such as Turkey, tightening external financing conditions and rising risk premiums could create a negative trend in the short term. However, the perception that inflation is temporary due to energy factors may also have a limited effect.

Eurozone inflation rising to 4% in October creates a mildly positive backdrop for the euro, amid expectations that the ECB may delay interest rate cuts. The technical picture supports this: the price is above the SMA20 and SMA50, MACD is above its signal line, and RSI at 64 indicates strong momentum but is approaching overbought territory. The latest close at 1.1247 shows the short-term uptrend remains intact. Nevertheless, RSI approaching 70 points to limited upside potential; the 1.1270-1.1280 resistance zone should be monitored. The news impact is moderate and not sufficient on its own for a strong breakout.