Archive for August 3, 2017

Things Falling

Posted in Finance, Politics with tags , , , , , , on August 3, 2017 by telescoper

A very busy but also very interesting day at the office in the Niels Bohr Institute ended this evening with a thunderstorm, complete with spectacular lightning and torrential rain. I got wet on the walk back to my small home, but I managed to get inside before the worst of it started. I seem to remember a similar thing happened last time I was in Copenhagen. Maybe it’s the time of year.

Anyway, torrential rain isn’t the only thing that’s been falling today. The Pound dropped sharply against the Euro, so it is currently around €1.1069, not far from its lowest point in the last year. That’s not directly relevant to my visit to Denmark, which isn’t in the Eurozone, but the Pound has tumbled against the Danish Kroner too. In fact it’s been falling steadily over the past three months:

At 8.234 Kroner to the Pound, this the worst exchange rate I can remember in all the approximately 30 years I’ve been travelling to Copennhagen. The rate has usually been about 10:1 or even higher. Copenhagen has always seemed a rather expensive place, but converting prices into Pounds at the current exchange rate makes your eyes water. Fortunately I’m getting my local expenses paid by the NBI so the increased cost won’t really affect me, but it’s definitely noticeable. Such is the shambolic state of our government that I wouldn’t bet against the pound reaching parity with the Euro before too long.

Of course one is not allowed to suggest that the falling pound and sluggish economic growth might be something to do with BrExit because that would be `talking the country down’. The worrying thing, though, is that we haven’t left the European Union yet. Just wait until March 2019 when we leave the European Union, together with the Single Market and Customs Union without any trade agreement. Where will the pound be then, I wonder?