Rand Extends Gains, Eskom Reduces Power Outages

Spot USD/ZAR remains under pressure and last deals at 18.9066, almost 400 pips lower on the day, with bears eyeing support from Feb 2 low of 18.5578, followed by key target at 18.1092, the low print of Dec 15. Bulls keep an eye on Jan 22 high of 19.2180.

• South Africa will get some reprieve after the recent flare-up in loadshedding, with power cuts reduced to Stage 2 until further notice.
• The BBG Commodity Index is little changed at typing, while the precious metals subindex sits 0.2% higher on the day.
• SAGB yields are a tad higher at typing, with 10-year breakeven inflation rate ticking to 6.41%.