EUR/USD extends losses, Fed meeting looms

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<li>Fed widely expected to hold rates</li>
</ul>
<p>The euro is in negative territory on Wednesday after posting a losing session a day earlier. In the North American session, EUR/USD is trading at 1.0532, down 0.40%.</p>
<p><strong>Fed expected to pause rates</strong></p>
<p>The Federal Reserve makes its interest rate announcement later today and the markets have fully priced in rate pause, which would keep the benchmark rate at 5.25%-5.50%. Although the decision is practically a given, investors will be looking for signals as to what the Fed plans to do next. Fed Chair Powell has been hawkish about inflation and I wouldn’t be surprised if he reiterated the same message at today’s meeting.</p>
<p>On the employment front, JOLTS Job Openings rose to 9.55 million in September, up from a revised 9.49 million in August and above the market consensus of 9.25 million. This was the highest level in four months, another sign that the labour market remains strong. The US releases nonfarm payrolls on Friday, with the banner gain of 336,000 last month still fresh in investors’ minds. The market consensus for September stands at 180,000.</p>
<p><strong>German manufacturing expected to remain soft</strong></p>
<p>Germany’s economy has sputtered, and the once proud locomotive of European growth is looking more like the sick man of Europe. The manufacturing sector has been exceptionally weak and has posted three successive readings below the 40 level. A reading below 50 points to contraction, while above 50 signals expansion. Germany will release the Manufacturing PMI on Thursday. The market consensus for October stands at 40.7, which would be a slight improvement from the September gain of 39.6.</p>
<p>.</p>
<p><strong>EUR/USD Technical</strong></p>
<ul>
<li>There is resistance at 1.0595 and 1.0664</li>
<li>1.0495 and 1.0426 are providing support</li>
</ul>
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