The EUR/USD pair gains ground to near 1.1655 during the early European trading hours on Thursday.
The Euro (EUR) strengthens against the Greenback on the hawkish stance of the European Central Bank (ECB)
The US Initial Jobless Claims data is due on Thursday. Markets will shift their attention to the Jackson Hole symposium later on Friday. The ECB is expected to raise the key interest rates in September after tightening in June to contain price pressures amid ongoing geopolitical tensions.
Markets are now pricing in a nearly 96% probability that the ECB will increase the deposit rate to 2.50% at its September policy meeting, according to the ECB Watch tool. Hawkish rhetoric from ECB policymakers underpins the shared currency. ECB Executive Board member Isabel Schnabel said on Wednesday that borrowing costs will need to rise further as the lengthy conflict in the Middle East and the surprisingly strong Eurozone economy pose upside risks to inflation.