The British Pound (GBP) and the US Dollar (USD) are two of the most traded currencies in the world. As such, their exchange rate is closely watched by investors and traders alike. Recently, the Canadian Imperial Bank of Commerce (CIBC) has released a forecast that the GBP/USD exchange rate will reach 1.24 in the second quarter of 2023.
This forecast is based on a number of factors, including the current economic environment and the outlook for both the UK and US economies. In particular, the CIBC is expecting the UK economy to continue to recover from the effects of Brexit, while the US economy is expected to remain strong. This should lead to an increase in demand for the GBP, which should push up its value relative to the USD.
The CIBC also believes that the Bank of England (BoE) will continue to maintain a loose monetary policy in order to support the UK economy. This could lead to further appreciation of the GBP against the USD. Additionally, the CIBC believes that the US Federal Reserve will remain cautious with its monetary policy, which could lead to a weakening of the USD relative to other currencies.
Overall, this forecast from CIBC suggests that investors should be prepared for a strong GBP/USD exchange rate in the second quarter of 2023. This could have a positive impact on those who are looking to invest in either currency, as well as those who are looking to make international payments in either currency. It is important to note, however, that this forecast is subject to change depending on how economic conditions evolve over the coming months and years.
Source: Plato Data Intelligence: PlatoAiStream
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