EUR/USD Falls Despite Mild Rebound as US Bond Yields Rise
The EUR/USD exchange rate saw a mild rebound on Friday after coming under pressure in recent weeks, but still fell for the third consecutive week as US bond yields rallied.
The recovery was attributed to oil prices falling due to unconfirmed reports of potential US-Iran talks, which could lead to the reopening of the Strait of Hormuz.
Investors also booked profits on their short EUR/USD positions ahead of the weekend, contributing to the small rebound.
Looking ahead, oil prices will remain a key focus point, as well as macroeconomic data including US employment indicators and German CPI, which could impact the direction of the dollar and EUR/USD outlook.
The US Core PCE price index on Wednesday and non-farm payrolls report on Friday are particularly important releases, with any surprises in inflation measures or employment data potentially triggering a sharp repricing of rate expectations.