EUR/USD Falls for Third Week Amid Dollar Rally and Oil Price Volatility

The EUR/USD pair rebounded slightly on Friday but still fell for the third consecutive week due to the US dollar and bond yields rallying across the board.

The bounce was attributed to a drop in oil prices, which fell after unconfirmed reports of potential US-Iran talks emerged. This caused Brent crude to dip below $100 per barrel, reducing pressure on currencies reliant on oil imports, including the euro, yen, and pound.

Investors likely booked profits on short EUR/USD positions ahead of the weekend, contributing to the rebound.

Looking ahead, investors will focus on oil prices, inflation data, and US employment indicators. Key releases include the US Core PCE price index on Wednesday and the non-farm payrolls report on Friday, which could impact rate expectations and the EUR/USD pair's direction.