Here are the current exchange rate for the £ against the Euro and the US dollar.
1. GBP- > EUR
Closing rate on 23 June 2016: £1 = €1.304
The lower the value, the more imports from the rest of the EU are costing the UK. An downward trend is therefore a bad thing, as the UK is a net importer of goods... Mostly from the EU of course.
2. GBP -> USD
Closing rate on 23 June 2016: £1 = US $1.4883
Bear in mind that the Brexiteenies are looking at the US as a potential export market, so the higher the £ goes against the dollar, the harder it will be to compete in the US. That, of course, is assuming the UK has anything important to sell that the US doesn't have already.
Egg cups, maybe? Marmite?
Yes: cars, electronics and precious metals, but above all a lot of heavy machinery.
Obviously currency markets are reacting to complex political situations, so the rise of neo-Nazism and Trump's political and financial mismanagement are also affecting the US dollar. Just as Johnson's ditto are affecting sterling.
No comments:
Post a Comment