EUR/USD Extends Losing Streak Amid Dollar Rally
The EUR/USD saw a slight rebound on Friday to finish the week positively after being under pressure in recent weeks. However, this recovery was not enough to prevent the exchange rate from falling for the third consecutive week as the US dollar and bond yields rallied across the board.
The mild recovery came as oil prices fell due to positive but unconfirmed reports of US-Iran talks resuming. This news lifted sentiment ahead of a busy week for macroeconomic data, which could shape the near-term EUR/USD outlook.
The dollar's technical condition and upcoming economic data appear to be aligning in a way that warns of downside risks. The greenback has climbed on the sharp rise in interest rates, with the market discounting nearly 100 bp of tightening over the next 12 months, including a nearly 2/3 chance of a hike late next month.