The EUR/USD currency pair has seen an increase in attractiveness during the early European session on Thursday. The rebound of this major pair was driven by a correction in the US Dollar (USD) after the FOMC meeting decided to keep interest rates unchanged on Wednesday. Currently, the EUR/USD pair has risen by 0.24% today, trading at 1.0596.

The FOMC's November policy decision aligned with market expectations, maintaining interest rates in the range of 5.25% - 5.50%. This marks the first time in this tightening cycle that the FOMC has paused rate hikes for two consecutive policy meetings. However, US Treasury yields and the value of the US Dollar weakened as investors dismissed the possibility of further rate increases.

Meanwhile, Federal Reserve Chairman Jerome Powell sought to reassure market participants that the Committee will take steps to bring inflation back to the 2% target, though the actions taken will heavily depend on the data.

On the Euro side, ECB Vice President Luis de Guindos noted on Tuesday that the latest CPI data shows a decrease in inflation in the Eurozone, which is seen as good news for the ECB.

Additionally, ECB policymaker Joachim Nagel stated on Tuesday that the ECB should keep interest rates higher for a longer period as inflation in the Eurozone has not yet been fully addressed, despite a significant decline last year.

On Thursday, traders will focus on the HCOB Manufacturing PMI from Spain, Italy, France, Germany, and the Eurozone. Furthermore, ECB's Philip Richard Lane's speech may provide insights into the future direction of monetary policy. During the American session, the weekly Initial Jobless Claims data for the week ending October 27 will be released.


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