UBS Global Wealth Management said that although the ECB may cut interest rates further after cutting interest rates by 25 basis points on Thursday, the euro may still strengthen. Because the lower global interest rate environment and the continued resilience of the US economy should be beneficial to economically sensitive currencies such as the euro, the euro should perform well against the US dollar in the next few months. The ECB may cut interest rates again in December, and then it may “carry out a series of interest rate cuts at every meeting until June next year. Deposit interest rates will reach 2% until the ECB presses the pause button.”

UBS Global Wealth Management said that although the ECB may cut interest rates further after cutting interest rates by 25 basis points on Thursday, the euro may still strengthen. Because the lower global interest rate environment and the continued resilience of the US economy should be beneficial to economically sensitive currencies such as the euro, the euro should perform well against the US dollar in the next few months. The ECB may cut interest rates again in December, and then it may “carry out a series of interest rate cuts at every meeting until June next year. Deposit interest rates will reach 2% until the ECB presses the pause button.”