Experts predict downcast UK Outlook, with EUR to outstrip GBP
According to the latest UK outlook predictions from the experts, the pound has a rough time ahead of it, and could soon be trading at the same level as the Euro. The UK currency, whose price plummeted from 1.31 Euro the day before Brexit to 1.09 Euro now, could thus have some serious shocks in store for British holidaymakers.
UK Feels Euro Pinch
Those UK denizens currently holidaying in traditional tourist destinations like Spain, Greece and Italy have already seen their spending power obliterated, causing the number of Brits opting for staycations to experience a rapid rise, despite the atrocious summer weather.
But US banking giant Morgan Stanley does not believe that sterling has hit rock bottom just yet, and has now prophesied a further fall – one that will see pound-Euro parity by the first quarter of 2018. This is a feat never thus far witnessed in the 18 years since the latter currency was introduced.
This was not the only comment made on the state of Britain’s future economic prospects, which were described by the banking behemoth as “bleak”, thanks to the continuing inability of Conservative ministers to provide clarity on their vision for a post-Brexit country.
GBP/EUR Live Daily Chart
Morgan Stanley Say UK Outlook “Bleak”
A spokesman commented: “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.
“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.”
Whilst Britain flounders, the Eurozone is experiencing a revival of fortunes, in sharp contrast with its former mainstay. This has seen its economy grow at twice the rate of the UK’s in recent months.
Although Brexiteers have pointed to the possibility of a new dawn of trading beyond Europe as a solution to the fallout of leaving the EU, this has failed to materialise according to recently released figures, with the country’s trade deficit only continuing to widen.
With unsustainable debt levels, evaporating investments in the wake of Brexit, and a currency that is only continuing to fall, it seems that such bold statements may nonetheless prove themselves the reality in the not so distant future – a fact that those trading really ought to be aware of.