The effects of the UK’s Brexit vote are once again in the headlines today, and this time it’s for very relatable reasons. Tesco as it stands has fallen out with a major household product supplier Unilever, who provide household and everyday goods. The deterioration in their business relationship is due to the depreciating Pound pushing up the prices of a number of household goods.
As it stands customers are unable to buy a number a Unilever goods online, such as Marmite, Hellmann’s mayonnaise, Pot Noodles, Lynx and PG Tips amongst other major brands.
In my opinion I think this could be just the beginning of a number of price wars created due to the Brexit votes effects on the economy, with petrol prices also likely to increase over the coming months.
Another major lender has announced this morning that they expect to see the GBP EUR exchange rates continue to decline over the coming months, down to 1 for 1 and that’s at the mid-market inter-bank level. HSBC has already made this forecast so the more major institutions making these claims I would think the more likely it will happen although they don’t always get it right and investors should consider this also. Many holiday goers are already receiving these levels as a number of bureau de changes are already offering less than 1 Euro for a Pound as their rates are generally very uncompetitive.
There is little economic data out of the UK this week so we can expect to see headlines such as this mornings to continue to drive Sterling exchange rates this week, as has been the way for much of this year.
Those looking to buy Euros may want to consider what a further 10-cent loss would do for your requirements, a further loss of €100 for every £1000 transferred is costly.