Euro, Sterling Could Fall if Energy Prices Continue to Rise -- Market Talk

0811 GMT - The euro and sterling could fall if energy prices continue rising markedly, with the risk of a further escalation in the U.S.-Iran conflict, MUFG Bank's Derek Halpenny says in a note. The rise in natural gas prices impacts household incomes which can feed through into weaker consumer spending and growth, he says.While expectations for interest-rates rises are becoming more aligned between the Federal Reserve, European Central Bank and Bank of England, investors are likely to see the U.S. economy being better able to manage potential tightening, he says. The euro rises 0.1% to $1.1393 after reaching a three-week low of $1.1363 on Thursday, LSEG data show. Sterling rises 0.1% after hitting a three-week low of $1.3296 Thursday. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

July 24, 2026 04:11 ET (08:11 GMT)