CIBC like the euro in the new year, forecasting 1.12 in Q1 and 1.14 in Q2.

The key points from the client note:

  • ECB monetary policy is still relatively very loose
  • but manufacturing sentiment is beginning to recover
  • for global trade - global sentiment improving
  • Trump has extended the final decision about auto tariffs into May next year
  • ECB Lagarde press conference - a bit more optimism on the domestic front
  • doesn't mean that the ECB is any closer to paring back stimulus program,