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,