The EUR/USD recovered some ground on Thursday, up a modest 0.10% after data from the United States (US) revealed a strong economy, justifying the Federal Reserve's reluctance to reduce rates, as witnessed on Wednesday. AT the time of writing, the pair trades at 1.1417, virtually unchanged.

Before Wall Street opened, the Fed's preferred inflation gauge, the core Personal Consumption Expenditures (PCE) Price Index, exceeded estimates and the previous month's reading, indicating that prices are rising. Other data revealed that the labor market remains resilient, after the number of Americans filing for unemployment claims dipped below estimates.

A day ago, the US central bank held rates unchanged, with two dissenters. Fed Governors Michelle Bowman and Christopher Waller supported a 25 basis points (bps) interest rate cut. At the press conference, the Fed Chair Jerome Powell revealed that a rate cut in September is not a certainty, while adopting a meeting-by-meeting approach, with no rush to ease policy.

Consequently, the Greenback rose, as depicted by the US Dollar Index (DXY). The DXY, which tracks the performance of six currencies vs. the buck, advanced 0.16% to 100.05.

Across the pond, inflation in the European Union (EU) seems to remain around the European Central Bank (ECB) 2% goal, following the release of the Consumer Price Index (CPI) in Germany, France, Italy, and Spain.

Traders gear up for Friday's Nonfarm Payroll figures for July, along with the announcement of the ISM Manufacturing PMI and the final University of Michigan (UoM) Consumer Sentiment index.

Source: Fxstreet