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 estimates
• TD on the European Central Bank - no major surprise. Now pessimistic on euro.
• Deutsche Bank expect faster rate cuts from the European Central Bank to come

• The ECB is behind the curve and oblivious to it

UBS too:

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