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

ghrh

So having a weak pound is part of the government's plan to boost the economy?

weaviemx5

The summary in that article also missed a couple of key losers from the article itself;

British consumers buying imported goods. Many imported items like food, petrol and electrical goods will become more expensive as the Pound weakens. This will push up shop price inflation. If the devaluation is sustained, we could see permanently higher prices in the shops. Though if the economy is very weak, underlying inflationary pressures will remain low.
Home grown fruit and veg. In recent years, the UK agricultural sector has seen a rise in the UK produced fruit and veg, but this has been heavily reliant on migrant labour. If firms find it hard to attract workers because of weaker Pound, they may shift production overseas.
When the advice is to buy UK farmed produce instead of imported goods, what happens when the prices of UK products goes up because those producers have to increase their costs to pay higher wages.

klaxhu

Indeed, plus the most important one: the products we make are relying on many parts made in the EU. Weaker pound, means less buying power and ultimately not worth for many manufacturers to make things over here as it will cost more. This obvious one almost always gets "forgotten" on purpose because it hurts. And yeah yeah..free ports will fix that. That was done to death already and why it doesn't work,

Sonic67

A red herring. The same argument was used against introducing the minimum wage.

When people have more money they spend more.

If you are on extremely low wages you take sandwiches in tin foil to work and a flask of coffee.

If you are paid a bit more you go to Subways for dinner. That then gives Subways and the people employed there a bit more. It means we have stores that might have closed being in business.

There's other effects, income support and other benefits etc are paid if your money is low. If people are on really low wages you have to give them something.

It's funny but those against those at the bottom wouldn't do such a job on such a wage and there's usually someone in charge somewhere on a big wage as "they deserve it."

Sonic67

It already is working.

Tourism is up, migration is down, wages are up. Want more links?

UK manufacturers rake in extra export cash thanks to weak pound

British car manufacturers are benefitting from the weak pound to the tune of hundreds of millions of pounds per month, as new figures show foreign sales are generating higher revenues once translated into sterling.

Exports now account for a bigger share of turnover for UK car and trailer companies, reversing the traditional position in which the domestic market was the most important source of revenues.

Average monthly export revenues in the past six months stood at £3.4bn, according to the Office for National Statistics, up 16pc on the £2.9bn average a year earlier.

Let the pound fall and the economy rise

A weaker pound works by making exports cheaper and imports dearer. The effect, as after all the other devaluations and depreciations of the past 100 years – 1931, 1949, 1967, 1976, 1992 and 2007 – will make the economy less dependent on consumers and more reliant on producers. Lord Mervyn King, a former governor of the Bank of England, thinks the latest fall in sterling is a good thing and he is right.

Fall in sterling is a welcome change, says Mervyn King

The collapse in the value of the pound since Britain voted to leave the EU has been described by Mervyn King, former governor of the Bank of England, as a welcome change.

Lord King, who ran the Bank during the 2008 banking crisis, told Sky News: “The economy was slowing somewhat before the vote and we are in a position where the rest of the world is not offering us much help.

“So, from that point of view the fall in sterling is a welcome change.”

ghrh

Can't seem to find a pledge for a collapse in the value of the pound to boost the economy anywhere in the Conservative manifesto.
Link?

Sonic67

Oh dear, a party has little to do with it.

Gordon Brown mocks the conservatives for a weak pound and then it happens to him.

There's advantages and disadvantages to a weak or a strong pound and if it doesn't move at all then it's "stagnation."

I'm afraid your attempt to make a point is falling rather flat.

What's really wrong with Sterling?

For Gordon Brown, who mocked the Conservatives in 1992, it is acutely embarrassing. Back then, he said: "A weak currency arises from a weak economy which in turn is the result of a weak Government." This time he is staying conspicuously quiet about the whole thing.

ghrh

So this government has intentionally devalued the pound to boost the economy?

Last time I checked we had a Conservative government.

Sonic67

No it's something that happens.

Let's suppose your economy is going great, your currency is stable and your country is doing well. You'd think you might have a strong currency. You then find you don't because in comparison to another country they are doing even better so your currency is weak in comparison.

Let's suppose your currency is weak. Then your exports go up, your tourism goes up, you make lots of money, then your currency strengthens from investment.

You then have a strong currency so then your exports go down, your balance of payments suffers and then your currency goes down again.

There's a lot more to it than that but it's simplistic to say one is good and another is bad.

The Euro has been pretty much weak since its existence.

Going to say that the Euro is a disaster then?
Hurrah, you got something right.

You didn't notice it was an example from the past?

ghrh

So it has become weak because the UK if not doing better compared to other countries. Thanks for confirming.