Could This Have Anything To Do With The Uk Leaving The Eu?

[sandyRoe]

http://www.independent.co.uk/news/business/news/pound-euro-exchange-rate-latest-update-sterling-brexit-talks-leave-eu-currency-eurozone-ecb-a7908396.html?cmpid=facebook-post

[jno]

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).

[ToraToraTora]

It's more to do with the uncertainty generated by leaving the EU. Uncertainty always makes the markets jittery. Good news for exporters bad news for those exporting to us.

[EDDIE51]

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.

[ludwig]

Yes. Anything bad that happens from now on and for the foreseeable future will be because of Brexit. Brexit is the new Thatcher.

[Spicerack]

https://uploads.disquscdn.com/images/c6669637250a2056ad4a8f4c59f9f65e30156b50c6fc74fd3dc3f1bb86d7ef33.jpg?w=320&h=242

[jim360]

Probably a bit more to it than that. The Eurozone economy has apparently been doing rather well lately.

[EDDIE51]

^^ Exactly and we will no longer be part of it !
I expect the £ to drop well under one Euro.

[youngmafbog]

Err Eddie, we are not part of the Eurozone and never have been thank goodness.

[Prudie]

It may well be due to Brexit this time and that suits the remoaners to apportion blame but the euro/pound rate was as bad as it is now at least 5 years ago. I clearly remember it being 90p+ when I went on holiday long before Brexit had even been thought of.

[youngmafbog]

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.

[jim360]

The last time it was this low was in the 2008 Economic crash, so it is, perhaps, not the best precedent.

[mikey4444]

It is often said that the Markets hate uncertainty and whatever we all think about Brexit, there is a great deal of unrest and turmoil about at the moment.

[Davemano]

EU citizens leaving in their 10.000s - which comic is this in.
No further comment from me on this topic because I don't revel in doom and gloom.

[jourdain2]

I can remember the pound having parity with the euro about 10/11 years ago. They were desperate times for expats on fixed pensions. No hint of Brexit then. Just the markets agitating again.

[jourdain2]

^^^ In fact the pound dropped just below the euro for a couple of days at the end of December. This was good news for many because Jan. 1st was the date on which the conversion rate was fixed for filling in your tax forms. It took me out of tax - and doubtless a lot of others also.

[Old_Geezer]

Probably partly. Uncertainty always causes hiccups, especially with nervous investors. It'll settle down once we are free and clearly a good bet once more.

[gulliver1]

This is just the start, and there will be more bad news to come. Brexit means doom and gloom for the UK , and we have not even left yet ! .
Think we need to get prepared for Referendum number two,
this time send Boris of to a far distant land, so he can practice playing at Foreign Secretary.