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JP Morgan Say Recent HUF Weakness a Short Squeeze Ahead of NBH Uncertainty

HUF
  • HUF remains weak with outflows generally seen from the HF community over the past couple of days, JP Morgan say.
  • JP Morgan note the headlines from yesterday regarding an extension to rate caps on large bank deposits as well as the government taking over responsibility for fighting inflation, which they say may be causing some nervousness around NBH engaging on a next step of rate cutting.
  • That being said, the headlines are not game changers and any link to NBH policy is tenuous so recent HUF weakness has most likely been a bit of a short squeeze ahead of the uncertainty of the NBH, they say.

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