UBS kept its EUR/USD forecasts at 1.23 for end-2025 and 1.18 for 2026, citing Fed cuts ...Middle East

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projecting 1.23 by end-2025 and 1.18 for 2026. The bank expects persistent softness in U.S. labour markets and a series of Federal Reserve rate cuts to weigh on the dollar over the coming year.

UBS economists forecast an additional 75bps of Fed easing in 2025—more than markets currently price in—helping compress rate differentials. They also flagged the potential nomination of a new Fed Chair as a factor that could open the door to deeper cuts in 2026, possibly pushing the 1-year forward 1-year U.S. rate below 3%.

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UBS lifts USD/JPY forecast, yen seen stuck in 140–150 range amid political risks This article was written by Eamonn Sheridan at investinglive.com.

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