Mitsubishi UFJ Financial Group analyst Derek Halpenny said a sustained surge in
energy prices, especially if a US‑Iran conflict intensifies, could put downward
pressure on the euro and pound. Higher natural gas prices would hit household
incomes and likely damp consumer spending and economic growth. He noted that
while market rate expectations for the Fed, ECB and BoE are converging,
investors may view the US economy as better able to withstand tighter policy.
