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Morgan Stanley now expects the ECB to cut on Thursday and again in April - MarketWatch

1. Morgan Stanley anticipates ECB rate cuts, starting in April. 2. 96% probability for a 25 basis point cut expected on Thursday. 3. Weak inflation and growth data have fueled a bearish outlook. 4. Further cuts expected, potentially down to 1% by June 2026. 5. EURUSD has increased 1% this year amidst rate speculation.

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FAQ

Why Bearish?

Rate cuts typically weaken a currency. Historical examples show EURUSD declines following ECB rate cuts.

How important is it?

The article highlights critical ECB decisions that directly influence EURUSD's valuation.

Why Long Term?

Market adjustments may unfold over weeks following concrete ECB action. The ongoing sequence of rate cuts suggests enduring bearish sentiment.

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