EBC Markets Briefing | Euro moves sideways after Riyadh airport hit

The euro was steady Monday despite escalation in the Middle East. The currency notched a fifth straight weekly drop as recent selling pressure was muted as France's beleaguered bond market steadied.

Trump indicated that the US might partner with Saudi Arabia to retaliate against Iran-supported Houthi rebels in Yemen following a fatal strike on Riyadh's primary airport.

That could potentially pull American forces deeper into an additional theatre of the conflict with Iran. He also said that Russia and Ukraine will not be targeting each other’s energy facilities.

French 10-year government bond yields trade nearly 5%, marking their highest level since July 2002. The European country’s debt-to-GDP ratio has climbed near 120%.

Investors note that their confidence in avoiding a recurrence of the eurozone debt crisis stems largely from the ECB's expanded set of market-stabilizing tools, combined with its commitment to safeguarding the euro.

Senior Eurozone officials said that ministers plan to press France into swiftly passing its 2027 draft budget bill, a move aimed at rebuilding credibility and preventing financial market panic from spreading.

EBC Financial Group analyst says the euro remains deep in the oversold territory. With RSI drifting upward, a short-term correction up toward $1.12480 is highly possible.

Asset Recap

As of market close on 9 October, among EBC major products, American Tower shares led gains after SpaceX announced it had struck a deal to acquire a nationwide low-band 800 MHz spectrum license portfolio.

The announcement triggered selling across the telecommunications sector as investors considered the potential implications for subscriber growth, network investment and competition.

Hong Kong regulatory authorities issued a warning that they may retract the policy that permits listed firms to maintain their trading status after auditors express doubts regarding their going-concern ability.

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EBC Financial Group Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC Global Financial Collaboration or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.