Free Trial

Rand Holds Tight Range, Load-Shedding Escalated

ZAR

USD/ZAR has now trimmed its initial uptick in sync with a pullback in the BBDXY index. The rate last deals at ZAR17.0229, up ~80 pips on the day, with bulls looking for a break above Jan 6 high of ZAR17.4343. Meanwhile, Jan 4 low of ZAR16.7815 provides the initial bearish target.

  • South Africa's local-currency bond yields trade lower across the curve, despite an earlier recovery attempt. 10-year breakeven inflation rate has slipped to 6.13%, giving away some of yesterday's advance.
  • The aggregate BBG Commodity Index sits 0.7% higher on the day, with the precious metals subindex up ~0.9% as we type, as gold trades ~$7.9/oz better off.
  • Problems with South Africa's electricity supply continue, with Eskom announcing that it will implement nightly Stage 6 load-shedding until further notice.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.