EUR/USD Faces Crucial Week Ahead Amid Oil Price Volatility

The EUR/USD pair experienced its third consecutive weekly decline, despite a mild rebound on Friday. This recovery was largely attributed to oil prices falling as positive but unconfirmed US-Iran talks emerged, causing Brent crude to dip below $100 per barrel.

This decrease in oil prices provided relief to currencies reliant on oil imports, such as the Japanese yen, euro, and British pound. Additionally, investors took profits from their short EUR/USD positions ahead of the weekend, contributing to the small rebound.

Looking ahead to the new week, market attention will be focused on oil prices, inflation data, and employment indicators. The US Core PCE price index is set for release on Wednesday, September 30, which could trigger a sharp repricing of rate expectations if it shows any surprise in inflation rates.