Buba’s Weber: Ample room to cut interest rates

The ECB has ample room to cut interest rates further given falling inflation pressures and a sharp deterioration in the growth outlook.

A 50 bp cut is baked in the cake but given the rapid collapse in inflationary pressures a bolder cut is not out of the question. I’d but a few bob on a 100 bp cut next week.

EUR/USD and EUR/JPY are both extending losses. The cross tested support at 122.00 while EUR/USD is now near 1.2850.