Over the last few weeks there have been various articles posted regarding the strength (or weakness!) of the pound.
The outlook from Morgan Stanley earlier this month had expectations of Euro - GBP parity in 2018. A comprehensive read was found at Pound Sterling Live.
So why is the Euro strengthening?
An article from CNN centred around " unexpectedly robust economic growth in Europe, reduced political risk and weakness in rival currencies"
What are the implications?
Well first of all, holidaymakers venturing to Europe would have seen their GBP (Or any other currency for that matter) buy them less wine, tapas and paella than they were expecting with airport currency bureau's offering GBP lower than parity.
And we can't talk about the Euro without mentioning..... yes that's right, BREXIT. The continuing uncertainty is not helping GBP with this article today from Nasdaq with GBP recording its "worst month in 10" against the Euro.
The European's must be happy? Not quite. As the Euro strengthens, export's from the Eurozone are sure to be impacted. On the upside, imports should be cheaper. This from Bloomberg highlights the balancing act European leaders and the ECB face.
Any other winners?
UK Manufacturing reported strong order books (CBI). The Federation of Food and Drink (FDF) reported "UK Food and Drink exports see record growth in H1 2017" with whisky, salmon and beer leading the charge.
The only thing that is certain here is that there will a period of uncertainty with currencies in uncharted territory. It makes for interesting times ahead!
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