JP Morgan cuts emerging market FX view on overcrowding worries

LONDON, Jan 19 (Reuters) - JP Morgan's strategists cut the bank's view on emerging market currencies to 'market weight' from 'overweight' on Monday, saying short-term positioning was now "overbought" following a year-long rally.

The U.S. investment bank, whose views are closely watched by traders, also cut South Africa's rand to 'market weight' from 'overweight' having already cut risk in central and eastern Europe and adjusted the bank's view on the Mexican over the last week.

"There are times to reduce risk in the short term due to overcrowding and this is one of those times in our view," they said in a note to clients.