The number of Americans filing new applications for unemployment benefits rose marginally last week, suggesting no deterioration in labor market conditions and reinforcing expectations that the Federal Reserve would not cut interest rates next week.

EUR/USD extends its sideways grind at around 1.0400 in the American session on Thursday. The data from the US showed that weekly Initial Jobless Claims rose to 223,000 from 217,000 in the previous week, limiting the US Dollar's gains and helping the pair hold its ground.

Initial filings for unemployment benefits in Maryland dropped last week compared with the week prior, the U.S. Department of Labor said Thursday. New jobless claims, a proxy for layoffs, fell to 2,684 in the week ending January 18, down from 2,911 the week before, the Labor Department said.