Rand Finds Itself On Back Foot

Spot USD/ZAR creeps higher this morning, even as the BBDXY index weakened into the European morning. The pair last deals at 19.0815, around 700 pips higher on the day, with bulls looking for gains past Oct 6 high of 19.6399. On the flip side, bearish focus falls on Sep 20 low of 18.6825.

• Eskom extended the suspension of loadshedding until tomorrow and will implement Stage 1 power cuts thereafter. This pattern of moving between no blackouts and Stage 1 outages will continue until further notice.
• The BBG Commodity Index sits ~0.4% lower on the session, but the precious metals subindex has recouped the bulk of its earlier losses and operates ~0.2% shy of neutral levels.
• SAGB yields have inched higher across the curve, with South Africa's 10-year breakeven inflation rate edging higher to 7.05%.