The Guardian: Brexit pain for holidaymakers as pound expected to fall further against euro12 August 2017 | 04:59 | FOCUS News Agency
Sterling is trading at ?1.09 after collapsing from ?1.31 on the day before the UK voted to quit the European Union in June 2016.
This has meant Brits holidaying in the likes of Spain and Italy have had their spending power slashed, which has meant more people than usual opting for “staycations” in the UK despite some poor summer weather.
Morgan Stanley believes the dilapidated British currency has further to fall, and is pencilling in pound-euro parity in the first three months of next year, when £1.02 will buy just ?1.
It would signal the first time in its 18-year history the euro has reached parity with sterling.
Theresa May, Philip Hammond, Boris Johnson, Chris Grayling, Liam Fox and Michael Gove have given contradictory statements about Conservative plans for trade, customs, tariffs, immigration, air control, a transition period and countless other facets of Britain’s divorce.
“The UK economic outlook looks bleak, with stretched household balance sheets, Brexit negotiation uncertainty potentially weighing on business investment, and net exports growth staying subdued despite a weak pound,” Morgan Stanley analysts said.
“On the politics front, risks have also increased, with the Conservative party showing split opinions on the UK’s Brexit position, revealing inner party tensions.”
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