JPMorgan lifts central European currency view after defence spending "sea-change"

LONDON, March 6 (Reuters) - Investment bank JPMorgan lifted its view on the currencies of Poland, the Czech Republic and Hungary on Thursday in reaction to what it called a "fiscal sea-change" in German and European Union defence spending.

It said the plans, which include a 500 billion euro ($539.65 billion) push in Germany, had the potential to trigger a "regime-shift" and meant it was turning "overweight" on the zloty, crown and forint. PLN=HUFCZK=

"We see this as bullish for FX" the bank's analysts said in a note.

At the same time, they turned "underweight" on the bonds of the countries due to the planned spending increases.

"Higher bund yields and potentially more ambitious local fiscal plans suggest pressure on CEE bonds," they said.

($1 = 0.9265 euros)