Its astonishlingly poor!
Anything below 1.5 is not good, at all, as most of the world trades on the back of US dolla's,
That means thing like Computers are rising in price.
Most equipment is based on a 10% margin at distribution level.
So, this time last year when it was around 2 to 1, a $100 component cost £50, plus your margin, and that is £55
Right now, the same component will not have changed in price but will now cost n £72.99, plus your margin £80.29
That is a rise of 45.98% - THAT IS TERRIBLE.
I am going skiing next month and debating whether I take euro's out now, or then.
2 to 1 will come back I am sure, or if it doesn't then the cost of goods will equal out in terms of cost for each country.
Few years ago it was always deemed what was $50 in the states was £50 in the UK which an exchange rate of about 1.6.
Made everything very expensive for the UK consumer.
When it got to 2 to 1 is was about right for the UK market, on par in terms of "acceptance" for consumers.
Its going to take a while,and I fear it's going to go down even more.
I just hope that things like the Obama presidency and bank situation over here calms down soon so that we are able to get back..
But it's all assumptions knowing for 100% certified fact is impossible, otherwise I too would be on a beach some where drinking expensive drinks.
