• EUR/USD backlides to 1.0900 handle on Thursday as US Dollar flows recover lost ground.
• The ECB held rates steady on Thursday as policymakers keep watching for inflation.
• Fiber traders to turn toward next week’s pan-EU inflation figures.

EUR/USD shed weight on Thursday, falling back into the 1.0900 key handle amid a broad-market recovery in Greenback bidding. An uptick in weekly US jobless claims helped to further support hopes for a September rate cut from the Federal Reserve (Fed), while the European Central Bank (ECB) balked in the face of lopsided economic data and opted to keep rates on hold for the time being.

US Initial Jobless Claims increased more than expected on Thursday, adding 243K new unemployment benefits seekers for the week ended July 12 compared to the expected 230K, and rising above the previous week’s revised 223K. With labor data softening, market expectations of a September rate cut will be further bolstered, but bets for a Fed rate trim have nowhere left to go with markets already pricing in nearly 100% odds of a quarter-point rate cut from the Federal Open Market Committee (FOMC) on September 18.