Rand Tad Firmer Despite Loadshedding Flare-Up

Spot USD/ZAR has oscillated between gains and losses, eventually losing altitude into the European morning. The rate sits at 19.0050, almost 200 pips below neutral levels. Bears see Feb 2 low of 18.5578 as their initial target, while bulls eye Jan 22 high of 19.2180 for resistance.

• SAGB yields are slightly higher, curve runs steeper at typing, with 10-year breakeven inflation rate seen at 6.43%. The BBG Commodity Index ha shed 0.2%, with the precious metals subindex last seen 0.3% better off.
• Electricity Minister Ramokgopa suggested that the latest flare-up in loadshedding could be over around mid-week. Eskom was forced to implement Stage 6 power cuts over the weekend, which the official said was a result of a "calculated risk," with increased planned maintenance levels decreasing the utility's generation capacity buffer against unexpected outages.
• On the political front, a growing number of polls indicate that the ANC will struggle to keep its electoral majority in the upcoming national election, which may cost it control over parliament. Separately, Pretoria's tensions with Washington DC are simmering, with a couple of US lawmakers proposing to review bilateral relations.
• South Africa will report December mining output tomorrow morning.