Production concerns arising amid weak Pound

14-10-2016

In news this week Tesco & Unilever are currently involved in a price row over Major household brands including Marmite, PG Tips and Pot noodles to name a few. The supermarket is resisting moves by Unilever to increase prices in the UK to adjust for the sharp decline in the Pound.

Tesco’s have removed these brands from there online store at this time, price increases are always discussed by retailers and there suppliers but rarely become public news. However I expect this dispute to be resolved quickly, as neither side will want to damage there respective brands reputations.

This is worrying sign of things to come though as other major suppliers may be looking to increase there prices pushing up the price of food and goods in the UK.

This squeeze on retailers is likely to hit data coming out of the UK in the next few months and as such may cause further volatility in the pound.

Hard data is lacking as we end the working week but next week sees the release of UK inflation figures and this will be one to watch when considering a currency deal.

In other news the European Central Bank will meet again next week to discuss any changes to be made to there monetary policy. The ECB have been facing there own set of problems with low inflation and weak growth continuing to affect the economy. Any action to strengthen there position should be monitored with interest and may cause a choice opportunity to buy Euro’s in the short term.

As usual if you have any requirements for currency or would like further information on anything mentioned in this post please feel free to email me at accounts@currencydeals4u.co.uk

 

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