#federal-reserve-rate-cut

#federal-reserve-rate-cut

The South African stock market opened to the downside as investors reacted to the Federal Reserve's interest rate decision. While the 25-basis-point cut came out as expected and the Fed's projections pointed to more cuts this year, the cautious tone of the Fed Chair had an impact on sentiment and could weigh on risk appetite. A decline in gold prices also weighed on the stock market and could continue to put pressure on the mining sector if corrections persist.

The index holding steady at the 97.00 level highlights the psychological importance of this support as the first line of defense against renewed selling pressure. However, the continued movement within a descending channel and the weakening short-term momentum raise questions about the dollar's ability to maintain this stability for long. The nine-day exponential moving average (EMA) at 97.32 remains a key barrier to any upward attempt, making it a critical near-term test.