What will the £/Euro exchange rate be on Nov 1 2019

Bl4ckGryph0n

What he is again, just like some on these boards, is the Conservative government. It doesn't matter whether they have the most awesome inspiring compassionate policy, they'll be against it. Its tribalism at another level.

weaviemx5

And I was just referring to those British people at the bottom of the wage pile who have been mentioned ad-hominem by certain Leavers on here who will be adversely affected by the value of the pound falling, although it appears that I’m the only one who gets accused of “doom and gloom” when I reference the same statistics?

Sonic67

Weak pound boosting tourism.

Weak pound boosting UK tourism industry

weaviemx5

So the pound going up is bad for industry who export, is the pound going down also bad for individuals who want to buy food from the supermarket?

Sonic67

Assuming you buy imported food and the cost is being passed on directly by the supermarket.

If you buy Italian Sausage and the cost has been passed on by the supermarket then yes.

From a UK farm it should be no different. A UK farm probably isn't importing anything to feed a pig so the cost is no different.

So as above, imports go up in cost with a weak pound. We shouldn't really be importing and we should be buying British shouldn't we?

French wine might go up but Chilean wine probably not.

Sonic67

I have a feeling "weak" pound is a negative connotation.

Weak sounds bad and strong sounds good.

If you are importing raw materials from the EU buying in Euros, and then selling back to the EU, you will lose out by paying more for the imported raw material, gain with increased sales as your export is more attractive.

Sonic67

.

weaviemx5

Thanks.  We as a country import something like 50-60% of the food we consume.  Whilst it’s a nice idea to only buy British, and that supermarkets won’t pass on their increased costs, I think the reality is more likely that the consumers will be hit with the increased costs. I was just using the example of those on the lowest wages who have also been hit with a 2% decrease in wages who will feel the most pain of the value of the pound dropping.

Sonic67

If that is the case, the rise in prices will come out as rising inflation.

Something wages has been ahead of recently, in part because fewer migrants coming here and that's in part because they lose out with a weak pound and wages going up for those in the UK from employers as a result.

Brexit: What's happening to migration?

At the same time, the pound is weaker. Quite simply, if you are sending money home to your family - a key reason why many people migrate to work - it may not be worth it any more.

Also food at the supermarket is one area where you are flexible. I don't think anyone buys exactly the same thing every week. I usually shop at Morrisons and buy named products. I can shop at Aldi and buy no name equivalents and spend less.

Some things will go up. If you explicitly buy Italian sausage and always buy Italian sausage then it will go up if we are assuming the supermarket is passing on the costs directly.

If you just want "sausage" then you will be buying whatever sausage you like and UK sausage won't be affected.

I buy and cook for the house. I don't have them shouting for explicitly imported food or for it being exclusively from Morrisons or whatever.

Whichever way you spin it, it's just imports going up.

Also consider from where. Chilean wine is down to the exchange rate with Chile, plus whatever tariff the EU puts on it as it is outside the EU.

Aldi still sells it cheaply.

Rasczak

...apart from the availability of farm labour - much of which comes from Europe based on the value of sterling. And the associated support/spares for the equipments and machinery that support pig farming, much of which is sourced from the EU and is affected by the price of Sterling. And the feed, a good portion of which is imported from the EU and thus affected by the price of Sterling. And the transport, itself with an associated support chain that will be in some way or other from the EU and affected by the price of Sterling.

So yes, the price of British pig meat is likely to go up if the value of Sterling slumps.