Rand Struggles Amid Cautious Sentiment

The ZAR is one of the worst performers in EMEA again, with spot USD/ZAR last seen at ZAR17.2858, up ~980 pips on the day. A clearance of Jan 6 high of ZAR17.4343 would support the bullish case, while bears keep an eye on Jan 12 low of ZAR17.6950.

• Local-currency bond yields are slightly elevated, albeit off earlier highs. South Africa's 10-year breakeven inflation rate is at 5.89%, after ticking away from one-year lows printed last week.
• The aggregate BBG Commodity Index last sits ~0.3% lower on the session, with the commodity complex coming under light pressure. The precious metals subindex is little changed at typing, as is gold.
• The ANC's National Executive Committee holds its annual meeting (lekgotla) after electing the party's 20-member top executive body dominated by President Ramaphosa's allies. The NEC is expected to discuss the imminent Cabinet reshuffle and the Eskom situation.
• South Africa's trade balance and budget balance will cross the wires tomorrow, with Absa Manufacturing PMI coming up Wednesday.