Eurozone Inflation Rises to 4%, PMI at Four-Month Low

In the Eurozone, inflation rising to 4% and the PMI falling to a four-month low are increasing stagflation concerns and weakening risk appetite. This combination reinforces expectations that the ECB may continue raising interest rates while economic activity slows. Selling pressure may emerge in global equity markets, while bond yields could move upward on inflation worries. Turkish markets may also be negatively affected by the global risk aversion trend; pressure on the Turkish lira may increase.

Inflation rising to 4% supports ECB tightening expectations, which is partially positive for the euro, but the PMI falling to a four-month low increases growth concerns, and these two effects offset each other. On the technical side, the price is above the SMA20 and SMA50, the MACD is above its signal, and the RSI at 66.8 is close to the overbought threshold; momentum is positive but upside room is limited. The last close at 1.1255 holds above the SMA20 around 1.1230. In the short term, 1.1280-1.1300 can be watched as resistance and 1.1220-1.1230 as support. Since the news flow is mixed, directional uncertainty is high, and a strong one-way move is not expected.