JP Morgan said on Wednesday that it now expects the European Central Bank to deliver 50 basis points (bps) or rate hikes by the end of the year, down from 75 bps in the previous report, as reported by Reuters.

JP Morgan also noted that it expects the eurozone economy to tip into a mil recession due to Gross Domestic Product contraction in the fourth quarter of 2022 and in the first quarter of 2023.

Market reaction

The EUR/USD pair showed no immediate reaction to this headline and was last seen rising 0.4% on the day near 1.0150.