EBC Markets Briefing | Euro resilient amid Middle East flare-up

The euro was steady on Friday, driven by surging bond yields and oil prices amid renewed concerns. Fixed-income markets remained ​uneasy despite stepped- up intervention.

The ECB raised interest rates by 25 bps as expected, and warned that the risk of higher inflation over the next year has risen following renewed fighting in the Middle East.

Investors remain split over the rate path, with a recent Deutsche Bank client survey showing no consensus on where Thursday's decision will fit into the central bank's hiking cycle.

Recent data shows EU gas stores are only 67% full, well below the five-year average. European wholesale natural gas prices remained near multi-year highs, weighing on local manufactures.

Two Yemeni officials stated that the Houthi militia has seized a strategic Red Sea port city. The major ground offensive could expand the group's control over a critical global shipping route.

Eurozone growth in Q2 was revised up to its highest rate in 4 years, Eurostat reported, on the back of a faster-than-expected expansion in Ireland and Germany.

EBC Financial Group analyst says that the euro slipped below 200 SMA, turning it into immediate resistance. If the support at 1.1606 holds over the coming sessions, buyers may push it above 1.1675.

Asset Recap

As of market close on 10 September, among EBC major products, WTI crude led gains as escalating Middle East shipping attacks stoke fears of extended supply disruptions.

Timothy Archer, President and CEO of Lam Research sold 30,000 shares of the company's common stock. That caused a sharp drop amid broader weaknesses of the technology sector.

Apple debuted its first foldable iPhone, marking the largest overhaul of its smartphone design ever and creating a new revenue opportunity for the tech giant.

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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.