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Forex Flash: Stronger South Africa GDP pushes ZAR higher – TD Securities

Driven by better performance of the manufacturing, finance, and agriculture industries, South Africa's GDP growth accelerated to 2.5% Y/Y in Q4 vs. 2.3% in Q3, expanding 2.55% for the full year 2012. The upside surprise had a positive effect on rand performance, being the best EM currency today.

“De-correlation of ZAR from the regional trends last week illustrated the strength of local drivers, and that European risks at this stage do not add much weakness to ZAR valuations, given the already short market positioning”, wrote analyst Marcin Budkiewicz, pointing to 20% probability of a rate cut in 5m-8m. “However, with CPI risks mostly skewed to the upside, these expectations are likely to be frustrated at some point”, Budkiewicz added, expecting rates to stay on hold in 2013.

Forex: GBP/USD rejected from 1.5215

The recovery of the pound against the dollar stalled once again at the 1.5215 area, where the 100-hour SMA reinforces static resistance. GBP/USD then fell back below the 1.5200 mark and even hit a fresh daily low of 1.5127, weighed by BoE's Tucker saying "real fx rates need to be lower".
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Forex: EUR/HUF little changed after MNB decision

The Hungarian forint stayed put around 294.60 after the MNB (Hungarian central bank) followed the broad consensus and cut the repo rate by 25 bps to a record low at 5.25%....
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