UK Election Results Hits Price of Branded Memory Sticks

Although there are a few seats still left to be declared it’s already obvious that no party in the UK general election will gain a sufficient majority to prevent a hung Parliament. Political commentators have been predicting this in the run up to what has turned out to be one of the most closely fought elections in recent times so whilst it has not come as a great surprise the financial markets are reacting badly to the result.

Shares on the UK Stock Exchange have crashed in early morning trading and the pound has fallen dramatically against the dollar. The markets have already seen significant falls over the last few days on the back of worries about the Greek economy and the European bail out plans. The results of the UK election coupled with concerns about the UK’s high borrowing levels mean the markets are going to be very turbulent places for the foreseeable future.

For any company looking to buy branded memory sticks or custom USB flash drives in the short term this is bad news. The vast majority of memory sticks in the world are manufactured in China and purchased in US dollars. The pound has now fallen 5% against the dollar in the last 2 days and the stark reality of this is that prices of branded memory sticks will have to rise by 5% to compensate.

It was thought that the currency markets had already factored in a potential hung Parliament in the UK into the exchange rates but the results coupled with the wider, global economic concerns have seen further falls.

If you are seeking quotes for branded memory sticks over the next couple of days be prepared for any prices you are given to be valid for very short periods of time, e.g. 1-2 days. It’s unlikely that any supplier, given the current uncertainty in the market, is going to be able to guarantee prices longer than this so check the terms of any quote carefully.

It’s too soon to say when and if the markets will settle down and some stability returns to the currency exchange markets and in turn the UK price for branded memory sticks. At USB2U we will do all we can to ensure our customers continue to get the best possible price for their branded memory sticks.