The recent free fall of Sterling against the Euro is hitting some mushroom concerns more than others.
A grower from the South attached to a marketing firm in the North is certainly going to feel a tightening. Equally, there must be some concern in some to the bigger entities exporting to GB from the South – the weaker pound is doing them no favours. From a high before August of Euro1.50 = GBP1 GBP, the rate stabilised at 1.45, then in November there was a big fall, reaching a low in January of Euro1.30= GBP1.
The news is good for British exports to Euro zone countries – but not good in the opposite direction.
If the pound falls much lower quite a few things could happen. Britain with a softer currency could become less attractive to migrant workers from Poland and other EU accession countries. And with 55% of UK goods exports going to euro countries there could be a revival in British manufacturing.
It's all swings and roundabouts as the cliché generator would say!
