CIBC* is careful about the economic prospects of Great Britain and predicts that the course on a couple of pounds to the euro will decrease to 1.1630 at the end of 2025 and will not change in 2026.
CIBC notes that in April there was a decrease in the number of long positions on pound sterling, which could be associated with economic fears.
The bank notes that the reduction in the Bank of England is completely laid down in the May meeting.
However, he believes that the pressure in favor of a more aggressive softening of the policy will gradually increase, especially if the data remains disappointing. The bank sees an opportunity for a faster reduction in the rate to 3.50%.
*Canadian Imperial BankofCommerce(CIBC) is one of the largest banking companies in Canada. The headquarters is located in a skyscraperCommerceCourt in Toronto, Ontario.