Euro-pound parity consequences

[Voluntary]

Pound is heading towards a parity with Euro reaching low today at 1.13 GBP-EUR.
There will be consequences of a weak Pound for both the UK and Ireland.

What are the immediate consequences of weak GBP for Irish people?
let's list just few:

1. Cheap goods, shopping trips to Newry and increased orders from amazon.co.uk, good for consumer, hard time for Irish retailers. Cheap alcohol.
2. Cheap second hand cars. Good for buyers, not that good for sellers as short term market value will decrease.
3. Irish export to UK will decrease. Irish exporters will need to find new connections and targets for their goods. Establishing new connections may pay back in the long run though.
4. Foreign professionals currently working in the UK already find their purchase power being shrunk. GBP-EUR parity should convince many to move out of UK and potentially to Ireland being another English speaking country. So we get educated workforce with no costs like education etc.
5. Tourism from Britain will decrease

 

[McDave]

I personally think a weak pound will go hand in hand with a weaker UK. I genuinely don't think this will yield an upside for Ireland, other than some occasional opportunistic gains. If anything, Brexit will expose our over-reliance on FDI and our inability to build efficiency into the way we do business here.

 

[Jack O Neill]

Pound is heading towards a parity with Euro reaching the all times low today 1.13 GBPEUR.
There will be consequences of a weak Pound for both the UK and Ireland.

What are the immediate consequences of weak GBP for Irish people?
let's list just few:

1. Cheap goods, shopping trips to Newry and increased orders from amazon.co.uk, good for consumer, hard time for Irish retailers. Cheap alcohol.
2. Cheap second hand cars. Good for buyers, not that good for sellers as short term market value will decrease.
3. Irish export to UK will decrease. Irish exporters will need to find new connections and targets for their goods. Establishing new connections may pay back in the long run though.
4. Foreign professionals currently working in the UK already find their purchase power being shrunk. GBP-EUR parity should convince many to move out of UK and potentially to Ireland being another English speaking country. So we get educated workforce with no costs like education etc.

Was up North today , noticeable increase in southern registered cars around the border towns , the rip off republic might actually have to compete a bit harder

 

[McDave]

Incidentally, a weak pound will mean more expensive energy costs for them, and an uptick in inflation. Much heralded 'cheap' exports will come at a price.

 

[Spanner Island]

Pound is heading towards a parity with Euro reaching the all times low today 1.13 GBPEUR.
There will be consequences of a weak Pound for both the UK and Ireland.

What are the immediate consequences of weak GBP for Irish people?
let's list just few:

1. Cheap goods, shopping trips to Newry and increased orders from amazon.co.uk, good for consumer, hard time for Irish retailers. Cheap alcohol.
2. Cheap second hand cars. Good for buyers, not that good for sellers as short term market value will decrease.
3. Irish export to UK will decrease. Irish exporters will need to find new connections and targets for their goods. Establishing new connections may pay back in the long run though.
4. Foreign professionals currently working in the UK already find their purchase power being shrunk. GBP-EUR parity should convince many to move out of UK and potentially to Ireland being another English speaking country. So we get educated workforce with no costs like education etc.

Tourism related business from Britain in Dublin has dropped noticeably in recent weeks.

It's taken a while to feed through but that shouldn't be too surprising as bookings are made a while before travel in many cases.

If a weak sterling is the new normal no doubt everyone will adapt to it eventually... but in the meantime it's going to be a total pain in the arse for Ireland.

 

[asset test]

I know we should all see the big picture. It doesn't look great in the short term anyway for exporters here. But they just have to compete along with other Euro zone countries anyway don't they?

Unfortunately Brexit, apart from the currency fluctuations is bringing its own unknowns into the equation, and no one really knows what will happen there, and indeed I don't think the UK knows or is readily equipped for it either, particularly WRT Trade agreements.

On the other hand I managed to get some electronics from Amazon.UK this morning and saved myself a tenner. Small potatoes but still. Same price here was E15 more expensive even taking postage into account.

I want to support my indigenous. But I do not like to be ripped off either.

Don't know what the solution is. But at the end of the day, the consumer will buy the goods at the best price.

 

[gleeful]

Incidentally, a weak pound will mean more expensive energy costs for them, and an uptick in inflation. Much heralded 'cheap' exports will come at a price.

They make virtually nothing from scratch - no one does these days - so cheaper exports are literally 'while stocks last'.

 

[gleeful]

I know we should all see the big picture. It doesn't look great in the short term anyway for exporters here. But they just have to compete along with other Euro zone countries anyway don't they?

Unfortunately Brexit, apart from the currency fluctuations is bringing its own unknowns into the equation, and no one really knows what will happen there, and indeed I don't think the UK knows or is readily equipped for it either, particularly WRT Trade agreements.

On the other hand I managed to get some electronics from Amazon.UK this morning and saved myself a tenner. Small potatoes but still. Same price here was E15 more expensive even taking postage into account.

I want to support my indigenous. But I do not like to be ripped off either.

Don't know what the solution is. But at the end of the day, the consumer will buy the goods at the best price.

Those electronics on amazon are imported, the UK doesn't make them - get them while they are cheap because sterling prices will rise.

 

[Voluntary]

Tourism related business from Britain in Dublin has dropped noticeably in recent weeks.

It's taken a while to feed through but that shouldn't be too surprising as bookings are made a while before travel in many cases.

If a weak sterling is the new normal no doubt everyone will adapt to it eventually... but in the meantime it's going to be a total pain in the arse for Ireland.

OP updated with point related to tourism from UK.

 

[Jack O Neill]

£599 - the cost of a new iPhone 7 from Apple UK equals €681.

A new iPhone 7 from Apple Ireland is €779.

Nice little saving there..

€700 for a phone is never a saving of any kind , mad world

 

[im axeled]

yet the city is booming as the pound drops, which is hard to understand, perhaps apples decision to route their taxes via the uk and build a new heaquarters for 5000 people is not a bad move, as we turn down a 13b wind fall of sorts, as a few other countrys will demand their cut we will spend an odd billion fighting no to accept it

 

[Voluntary]

£599 - the cost of a new iPhone 7 from Apple UK equals €681.

A new iPhone 7 from Apple Ireland is €779.

Nice little saving there..

It may be short term saving though. The pricing may change as iPhones aren't made in UK. Apple will most likely set it's pricing in the UK based on the GBP-USD exchange rate. GBP is weakening against the dollar too.

 

[im axeled]

I know we should all see the big picture. It doesn't look great in the short term anyway for exporters here. But they just have to compete along with other Euro zone countries anyway don't they?

Unfortunately Brexit, apart from the currency fluctuations is bringing its own unknowns into the equation, and no one really knows what will happen there, and indeed I don't think the UK knows or is readily equipped for it either, particularly WRT Trade agreements.

On the other hand I managed to get some electronics from Amazon.UK this morning and saved myself a tenner. Small potatoes but still. Same price here was E15 more expensive even taking postage into account.

I want to support my indigenous. But I do not like to be ripped off either.

Don't know what the solution is. But at the end of the day, the consumer will buy the goods at the best price.

can/will irish prices stay high

 

[HarshBuzz]

Pound is heading towards a parity with Euro reaching the all times low today 1.13 GBPEUR.

Point of order:

This is nowhere near the lowest EUR\GBP rate ever.


Historical exchange rates from 1953 with graph and charts

Back to skool methinks.

 

[automaticforthepeople]

Price of oil will rise in UK driving up inflation and will put pressure eventually on wages as sterling drops against the dollar. A rise in the price of oil in the next 18 months will put pressure on costs to industry in the UK/Northern Ireland.

 

[Voluntary]

can/will irish prices stay high

I believe the increased competition will only do good for Irish consumer.

 

[Spanner Island]

yet the city is booming as the pound drops, which is hard to understand, perhaps apples decision to route their taxes via the uk and build a new heaquarters for 5000 people is not a bad move, as we turn down a 13b wind fall of sorts, as a few other countrys will demand their cut we will spend an odd billion fighting no to accept it

There's all sorts of convoluted reasons the city is booming which are being discussed constantly in business pages...

The truth seems to be that nobody has a clue... and everyone is simply cherry picking data and interpreting it to suit their own already held point of view which they've no intention of shifting away from anyway...

Car sales are apparently up in the UK too... which some are claiming is a sign of confidence...

But then perhaps if you're in the UK and you're thinking about buying a car in the next few years (an imported car perhaps) and you think a load of tarriffs might be slapped on imported cars in the next while... well then you might bring forward your purchase which might result in a short term spike in car sales followed by a possible fall...

Who knows?

I don't think anyone really knows tbh and that all that's happening is just best guesses and hoping and fingers crossed etc.

 

[Voluntary]

Price of oil will rise in UK driving up inflation and will put pressure eventually on wages as sterling drops against the dollar. A rise in the price of oil in the next 18 months will put pressure on costs to industry in the UK/Northern Ireland.

Price of oil and all other raw material will rise in UK, will it drive the inflation and will it put pressure on wages? Only if the economy keeps strong. The alternative is higher prices for British consumer with less purchasing power.

 

[NAPBAR]

I personally think a weak pound will go hand in hand with a weaker UK. I genuinely don't think this will yield an upside for Ireland, other than some occasional opportunistic gains. If anything, Brexit will expose our over-reliance on FDI and our inability to build efficiency into the way we do business here.

Funny that the Brits have been unsuccessfully trying to devalue their currency for 7 years and when it happens everyone thinks it is going to be a disaster.

Nobody batted an eyelid 7 years ago.

Britains National debt decreases day by day.

 

[Voluntary]

Funny that the Brits have been unsuccessfully trying to devalue their currency for 7 years and when it happens everyone thinks it is going to be a disaster.

Nobody batted an eyelid 7 years ago.

Britains National debt decreases day by day.

Is the Britains National debt all denominated in GBP?