JPMorgan Chase Withdraws 50 Basis Point Rate Cut Expectation from ECB

Forex - JPMorgan Chase (NYSE:JPM) has revised its expectation that the ECB will implement a 50 basis point rate cut in January to December. The bank has brought forward its call for a half-point rate cut from the European Central Bank, citing the slowing economic activity in the Eurozone. JPMorgan had previously expected policymakers to wait until January to increase the pace of easing. The JPMorgan report has encouraged money market traders to bet on a 50 basis point cut next month, raising the likelihood of such an outcome from 10% to 20%. Economist Greg Fuzesi stated, "Given the sharp PMI decline, slowing service inflation momentum, the possibility of persistent trade uncertainty, and the starting point of restrictive rates, the situation looks strong."