Business & Finance0 min ago
Could This Have Anything To Do With The Uk Leaving The Eu?
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I think so. The fall began the morning after the Brexit vote and is still going on; I don't know where the bottom will be.
There's an argument that it was overdue anyway - sterling was overvalued, and the vote just triggered it. But I don't know if people envisaged it coming close to par with the euro.
Good news for exporters. Less good for importers, which is most of us (and include people going on holiday in Europe).
There's an argument that it was overdue anyway - sterling was overvalued, and the vote just triggered it. But I don't know if people envisaged it coming close to par with the euro.
Good news for exporters. Less good for importers, which is most of us (and include people going on holiday in Europe).
Of course it is about leaving the EU !
It is going to get a lot worse! It will be at least another year before the EU even starts to talk about possible trade deals. For all that time the UK's industry does not know the conditions it will be allowed to trade under. EU citizens who were working and paying tax in the UK are leaving in their 10,000s and employers are already forecasting that they will not be able to retain enough workers to expand or even continue at the same rate. The unemployment rate for UK workers is at a 43 year low and will get lower as the last of us 'Baby Boomers' reach retirement age.
It is going to get a lot worse! It will be at least another year before the EU even starts to talk about possible trade deals. For all that time the UK's industry does not know the conditions it will be allowed to trade under. EU citizens who were working and paying tax in the UK are leaving in their 10,000s and employers are already forecasting that they will not be able to retain enough workers to expand or even continue at the same rate. The unemployment rate for UK workers is at a 43 year low and will get lower as the last of us 'Baby Boomers' reach retirement age.
I suspect there are quite a few elements affecting the £ of which Brexit is one.
However it is in our interest to have our goods prices low aiding exports whilst we are in the transition period, a high £ would be very problematic for exporters. A low GBP may well hit the EUR since it will mke out imports very expensive meaning home grown articles will become ore attractive. This will be particularly prevalent in the agricultural industry and should aid that once subsidies for doing nothing or just growing rape seed stops.
Another point to remember is that though the EUR is doing well it needs to. Once the UK stops paying in its contribution this will have quite a hit, one I would think currency traders will be trying to make something out of.
Interesting times ahead but personally I am happy with paying a bit more in the short term for the long term gains.
However it is in our interest to have our goods prices low aiding exports whilst we are in the transition period, a high £ would be very problematic for exporters. A low GBP may well hit the EUR since it will mke out imports very expensive meaning home grown articles will become ore attractive. This will be particularly prevalent in the agricultural industry and should aid that once subsidies for doing nothing or just growing rape seed stops.
Another point to remember is that though the EUR is doing well it needs to. Once the UK stops paying in its contribution this will have quite a hit, one I would think currency traders will be trying to make something out of.
Interesting times ahead but personally I am happy with paying a bit more in the short term for the long term gains.
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