Following a decline to 14-month lows below 1.1450, the GBP/EUR exchange rate has been steadily recovering, reaching three-week highs near 1.1770. This rebound stems from an increase in risk appetite and a positive response in equities. However, CIBC has expressed concerns regarding the UK economic outlook, predicting that the GBP/EUR exchange rate may retreat to 1.1630 by the end of 2025 with no expected changes in 2026. Investors need to stay alert to economic indicators that might impact currency movements.