EUR/USD Falls for Third Week Amid Oil Price Volatility
The EUR/USD exchange rate showed some signs of relief on Friday as oil prices fell following unconfirmed reports of US-Iran talks. This led to a mild rebound in the pair, but it was not enough to prevent its third consecutive weekly decline.
The rally in the US dollar and bond yields continued, with the 10-year Treasury yield moving above the 5% level. This has put pressure on lower-yielding currencies such as the euro.
Looking ahead to the new week, investors will be keeping a close eye on oil prices, inflation data, and employment indicators from the US. The US core PCE price index is due on Wednesday, followed by the non-farm payrolls report on Friday.
The EUR/USD has been holding above an important support area around 1.1350 to 1.1400, but if this level gives way, it could fall towards 1.1300 and possibly head down to 1.1200.