EUR/USD reclaimed the 1.0600 mark, Eurozone PMI, US data loom

The EUR/USD pair gains traction during the early European session on Thursday. The rebound of the major pair is bolstered by the correction of the US Dollar (USD) after the Federal Open Market Committee (FOMC) policy meeting decided to maintain the interest rate unchanged on Wednesday. At the press time, the EUR/USD pair is up 0.24% on the day to trade at 1.0596.

The FOMC's policy decision in November matched market expectations at its November meeting, with rates keeping unchanged in the 5.25%–5.50% range. This is the first time in this tightening cycle that the FOMC has paused rates for two consecutive policy meetings. However, the US Treasury bond yields and the Greenback edge lower as investors discount the odds of further rate hikes.

Meanwhile, Federal Reserve (Fed) Chair Jerome Powell attempted to reassure market participants that the Committee would take action to bring inflation back to the 2% target, but the policy choices will remain highly data-dependent.

On the Euro front, European Central Bank (ECB) vice president Luis de Guindos said on Tuesday that the recent CPI data suggested a fall in Eurozone inflation and it was good news for the ECB. Additionally, ECB policymaker Joachim Nagel said on Tuesday that the ECB must keep the rate higher for longer since inflation in the eurozone has not been conquered despite a large drop in the last year.

Later on Thursday, traders will focus on the HCOB Manufacturing PMI from Spain, Italy, France, Germany, and the Eurozone. Also, the ECB’s Philip Richard Lane speech could offer some hints about monetary policy guidance. In the American session, the US weekly Initial Jobless Claims for the week ending October 27 will be due.