The pound to euro exchange rate showed very little movement as it emerged the Brexit deadline date has been pushed back once again. The EU has granted the UK an extension to the Halloween date of 31 October 2019. The lack of shift suggests the market was well prepared for the announcement of the delayed date. This new October date comes after a compromise between France who wanted a short extension and Germany who backed a longer one.
The pound is currently trading at €1.160 against the euro, according to Bloomberg at the time of writing.
May told journalists following the latest Brexit news: “What we have agreed tonight means that we can leave the European Union before June 30.
“What we need is to ensure that we have an agreement in parliament, that we can get through the necessary legislation to enable us to leave. This decision enables us to do that.”
Meanwhile, EU Council President Donald Tusk said: “This extension is as flexible as I expected, and a little bit shorter than I expected, but it’s still enough to find the best possible solution.”
However, he also uttered a warning to the UK, requesting: “Please do not waste this time.”
May is said to believe this is a “pretty good outcome” as long as Brussels is lenient with the conditions imposed on Britain.
Yesterday, the pound was supported today by a better-than-expected GDP figure.
The British economy grew by 0.2 per cent in February from January, according to data from the Office of National Statistics.
Over the three months to February, the economy grew by 0.3 per cent.
Further data revealed that both UK manufacturing production and industrial production rose in February.
Britons heading on holiday should also protect themselves against possible rising spending costs. Nick England, CEO at EasyFX said: “With the Brexit outcome still unclear, Brits travelling abroad this Easter could be faced with a more expensive holiday than they bargained for.
“As the value of the pound continues to follow the same ups and downs of the Brexit debate, those that leave converting their currency until the airport’s bureau de change risk negatively impacting their spending money.
“Holidaymakers really should take a smarter approach to their cash… By buying half of their spending money now and half later, travellers can both capitalise on Sterling volatility, and protect themselves against any potential crashes from a no-deal Brexit.”
The Post Office is currently offering a pound to euro exchange rate of €1.1242 for over £400 and €1.1370 for over £1000.
Brexit has been shown to have played havoc with holidaymakers’ plans, with the lack of a deal signed on the dotted line prompting a huge shift in British traveller’s vacation habits – with a fifth abandoning holiday plans altogether. A new survey by emerchantpay shows 19 per cent of Britons have altered their holiday plans as a result of ongoing uncertainty.
Holidaymakers who are heading abroad have been warned to be careful when using their credit card while away as certain credit cards used abroad can cost consumers as much as £50-£60 in charges, research carried out by financial advice website Moneycomms.co.uk revealed.
Alastair Douglas, CEO of credit experts TotallyMoney said: “With the Easter break fast approaching, many will be looking forward to a bit of time away. But packing the wrong credit card could easily cost a lot more than you anticipate.”
Douglas added: “Some credit cards are ultra-expensive when used outside the UK, causing havoc with your holiday spending budget, because we’re not just talking about a few pounds. In some cases, it can set you back an extra £50 or more.”
“To avoid budget-impacting credit card charges sign up for an ‘overseas’ credit card, prepaid currency card or Debit Card (if you’re prepared to switch bank account). Keep this dedicated overseas card in a drawer with your passport as your foreign spending card of choice.”