EUR/USD stays near 1.0550 as Fed keeps rates unchaged
- Federal Reserve keeps rates unchanged as expected.
- US Dollar slid modestly after the FOMC statement, limited market reaction.
- EUR/USD holds onto daily losses, near the 1.0520 support area.
The EUR/USD rose modestly to 1.0552 after the FOMC statement and then lost momentum. The US Dollar fell modestly on a limited market reaction.
Fed delivers as expected
The Federal Reserve (Fed) has decided to maintain its target range for the federal funds rate at 5.25% to 5.50%, in line with market expectations. During this meeting, the Fed did not provide macroeconomic projections. The statement was practically similar to the September meeting. Market attention is focused on the upcoming press conference by Chair Jerome Powell.
Earlier on Wednesday, the ADP employment report indicated an increase in private payrolls by 113,000 in October, surpassing September's figure of 89,000 but falling short of market estimates of 150,000. Another report revealed that the ISM Manufacturing PMI unexpectedly worsened in October to 46.7, down from 49 in September. The JOLTS Jobs Opening data exceeded expectations, rising to 9.55 million in September compared to the anticipated 9.25 million. Additional employment data is scheduled for release on Thursday with Jobless Claims and on Friday with Nonfarm Payrolls.
Levels to watch
The EUR/USD is trading near the crucial support level of 1.0520. A breakdown below this level could potentially lead to further losses, with the next target being the 1.0500 area. On the upside, for an improved intraday outlook, the Euro must surpass the 20-hour Simple Moving Average (SMA). The pair is headed toward its daily close in two weeks. However, while above 1.0520, losses seem limited.
Technical levels