As a result of the next meeting, the Fed announced that it does not exclude a 2-fold increase in the rate by 0.25% in 2023. This is a year earlier than investors expected. Fed head Jerome Powell did not rule out the reduction of the bond repurchase program. Now it is $ 120 billion a month (US Treasuries $ 80 billion and mortgage bonds $ 40 billion). Director of St. Louis Federal Reserve - James Bullard said that it makes sense to raise the current rate (+ 0.25%) by the Fed early next year, if inflation continues to rise. Let's remind that in May it was 5% in annual terms. Now inflation in the US is expected to fall to 4.5% in June. In turn, the weakening of the South African rand may occur against the background of a decrease in world prices for non-ferrous metals. The Chinese authorities are going to sell part of the state reserves of copper, aluminum and zinc to reduce their imports. On June 23 in South Africa will be published data on inflation for May. A noticeable increase is expected, which may weaken the rand exchange rate. In April, consumer prices in South Africa rose 4.4% on an annualized basis. This is higher than the South African Reserve Bank rate, which is currently 3.5%.
| Indicator | VALUE | Signal |
|---|
| RSI | | Sell |
| MACD | | Buy |
| MA(200) | | Sell |
| Fractals | | Sell |
| Parabolic SAR | | Buy |
| Bollinger Bands | | Buy |
Summary of technical analysis
| Order | Buy |
| Buy stop | Above 14.4 |
| Stop loss | Below 13.4 |