UBS see plenty more European Central Bank rate cuts, Dec & 2025. Euro has cyclical support

The ECB cut rates on Thursday:

Forexlive Americas FX news wrap: ECB cuts rates, US retail sales beat estimates

Given the state of the EU economy analysts are piling in projecting further rate cuts:

RBC expect a cascade of European Central Bank rate cuts for the next six months+Forexlive Americas FX news wrap: ECB cuts rates, US retail sales beat estimatesTD on the European Central Bank – no major surprise. Now pessimistic on euro.Deutsche Bank expect faster rate cuts from the European Central Bank to comeThe ECB is behind the curve and oblivious to it

UBS too:

see a December rate cutproject the deposit rate to hit 2.0% in 2025see support for the euro in the months ahead, cyclical factors for FX more broadly including EUR

This article was written by Eamonn Sheridan at www.forexlive.com.