Rand Extends Losses, New ANC MPs Take Office

Spot USD/ZAR has been trending higher today, testing the 50% retracement of its Oct 13 - Jan 12 sell-off (ZAR17.6382). The rate last deals at ZAR17.6275, ~1,520 pips better off, with bulls looking for a clean break above that Fibo retracement and a move towards Dec 13 high of ZAR17.7601.

• The commodity complex is on the defensive, which saw the BBG Commodity Index refresh cyclical lows. The precious metals index has trimmed some gains but holds above neutral levels.
• Local-currency bond yields have stabilised at elevated levels, with the broader FI coming under pressure today. South Africa's 10-year breakeven inflation rate last sits at 5.90%, slightly off the 5.93% session high.
• The FTSE/JSE Africa All Share Index has shed ~1% today and is facing technical headwinds, with the RSI returning from overbought territory as the index pulled back from record highs registered towards the back end of last month.
• Four ANC executives were sworn in as MPs today, in line with earlier reports. Upon taking his parliamentary seat, the ruling party's deputy leader Paul Mashatile said that President Ramaphosa has not yet briefed the ANC's "Top Seven" officials about the expected Cabinet reshuffle.
• Eskom is running Stage 4/3 load-shedding at the moment, with a de-escalation to Stages 2/3 slated for Wednesday.