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USD/ZAR Treads Water as Eskom Implements Load-Shedding to Avoid Reserve Depletion

SOUTH AFRICA
  • USD/ZAR trades +0.12% higher this morning, brushing off tentative USD weakness in early trading as Eskom CEO De Ruyter warns about risks to grid stability with reserves running low.
  • The cross fell -0.74% yesterday on the back of sustained selling pressure on the USD coming from improved risk sentiment and firmer equities.
  • Part 2 of the Zondo report was released, but had little market impact at this stage.
  • Zuma and a few ex ministers are due to be investigated, while Ramaphosa continues to build public support for his anti-corruption movement by releasing the documents immediately.
  • The return of load-shedding is a sign of a difficult year ahead for Eskom with extensive outages expected to create a drag on economic activity throughout 2022.
  • US ADP data will be eyed today ahead of NFP’s on Friday.
  • Strong results from Google overnight, have been supporting risk sentiment in the early part of the session.
  • Intraday Sup1: 15.2120, Sup2: 15.1438, Res1: 15.3663, Res2: 15.3914
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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