Rand Garners Strength, Loadshedding Reprieve Extended

Spot USD/ZAR has sold off at the start to the week, despite relatively stable performance from the BBDXY index, with Eskom confirming that loadshedding will remain suspended until further notice after what has already been a 12-day reprieve.

• The aggregate gauge of commodity strength is a tad softer this morning, but the precious metals subindex has added 0.8% amid a fresh all-time high for spot gold. SAGB yields sit slightly higher across the curve, with 10-year breakeven inflation rate advancing to 6.93%.
• Political risk will gradually come to the fore as the May 29 elections draw nearer, with much uncertainty around the outcome. The MK Party has challenged the Election Commission's decision to prevent ex-President Zuma from running in the parliamentary election in court and awaits the verdict.
• When this is being typed, spot USD/ZAR trades at 18.6113, around 900 pips worse off on the day. Bears look for losses past Mar 13 low of 18.5066, while bulls eye Mar 28 high of 19.1063 for initial resistance.