The euro pulled back from a three-month high against the US dollar on Thursday as the dollar stabilized after a recent selloff. The US dollar index, which tracks the greenback against six major currencies, edged higher after reaching its lowest level in several months. Better-than-expected initial jobless claims pointed to resilience in the US labor market, supporting the dollar and weighing on EUR/USD. Investors are reassessing expectations for Federal Reserve rate cuts, with markets pricing in a slower pace of easing than previously expected. Traders are watching upcoming US inflation and retail-sales data, as well as Federal Reserve and European Central Bank commentary, for clues about future policy divergence and the next major move in the currency pair.