Energy impact challenges economic recovery expectations, causing the euro to fall to a five-week low.

According to Chris Turner from the Netherlands International Group in a report, due to military strikes in the Middle East causing energy prices to rise, the Euro may further decline. He pointed out, "Investors have been overweighting the Euro and European assets this year due to optimism about the recovery outlook, but this expectation will naturally be challenged this week by the rise in energy prices." Turner stated that unless the conflict cools down early, the Euro could fall to 1.1575. He believes that the nature of this energy shock will benefit the US Dollar the most, reflecting the US's energy independence and reducing the possibility of further rate cuts by the Federal Reserve due to the prospect of rising inflation.