EUR/USD Struggles Amidst Ongoing US Dollar Rally

The EUR/USD exchange rate posted a mild rebound on Friday, but still fell for the third consecutive week as the US dollar and bond yields rallied. The recovery came after reports emerged that the US and Iran were potentially resuming talks, causing oil prices to fall.

Oil's decline relieved some pressure on currencies of economies reliant on oil imports, including the Japanese yen, euro, and British pound. Investors also booked profits on their short EUR/USD positions ahead of the weekend, contributing to the small rebound.

Looking ahead, investors will focus on oil prices, inflation data, and employment indicators. The US Core PCE Price Index is due on Wednesday, September 30, while the non-farm payrolls report is scheduled for Friday, October 2.