Eurozone Inflation Rises to Three-Year High

Inflation in the Eurozone rising to a three-year peak is strengthening expectations that the ECB may accelerate its tightening steps. This could suppress global risk appetite and lead to a selling trend in equity markets. In Turkey, global risk aversion and a stronger dollar may create additional pressure on the Turkish lira. In the short term, market sentiment may be negatively affected.

Eurozone inflation rising to a three-year peak could weigh on global risk appetite and have a mildly negative effect on technology stocks. GOOGL already shows a weak technical picture: the price is below the SMA20 and SMA50, MACD is in negative territory, and RSI at 36 signals weakness. However, with RSI approaching oversold territory, short-term bargain buying may be limited. Since the news is not specific to GOOGL, the impact may remain limited. I therefore assess the direction as downward but with low confidence.

Inflation rising to a three-year peak may bolster expectations for an ECB rate hike, potentially supporting the euro. The price is already above the SMA20 and SMA50, with RSI at 65 indicating positive momentum but approaching overbought territory. MACD is above its signal line, and a 24-hour change of +0.41% confirms a buying bias. A short-term upward trend is likely, although the RSI level suggests limited upside room. The news impact may be limited as the market may have partially priced it in.