Rand Worst EMEA Performer After Large U.S. NFP Beat

The South African Rand is the main victim in the EMEA basket of the surge in U.S. dollar caused by a big overshoot in headline U.S. NFP figure and the ensuing hawkish Fed repricing. Spot USD/ZAR traded 1.7% higher at one point, hitting a session high of ZAR17.3596, and it keeps refreshing best levels.

• Local-currency bond yields have extended their move higher amid a parallel upswing in U.S. Tsy yields. South Africa's 10-year breakeven inflation rate has now fully erased yesterday's drop and last sits at 5.80%.
• The commodity complex has come under pressure, with the composite BBG Commodity Index down ~0.8% at typing. The precious metals subindex has sank after the release of NFP data and is now ~1.9% worse off.
• The Cabinet's lekgotla is underway, with the aim of finding solutions to end the energy crisis sooner than expected. The meeting is a precursor to President Cyril Ramaphosa's February 9 State of the Nation Address (SONA).