Market News

British holidaymakers could get more for their money abroad after the Pound climbed to its strongest level against the Euro in nine months – and experts say now could be the moment to snap up travel cash.

Sterling has risen from around €1.14 to about €1.16 in the past two weeks, reaching its highest level since June 2025. Currency specialists say the shift means UK travellers heading to Europe may currently get a slightly better deal when exchanging money.

Analysts say the movement has been driven largely by expectations that the Bank of England will keep interest rates higher for longer than the European Central Bank, which markets think could move sooner to cut rates.

Tony Redondo, founder of Cosmos Currency Exchange, said rising oil prices and geopolitical tensions have pushed markets to rethink the outlook for inflation and interest rates.

He said: “The Pound’s rise and the Euro’s decline are being driven by another uptick in oil prices. In an environment of rising global fuel prices, markets are betting that the Bank of England will raise UK interest rates faster and further than the European Central Bank.

“That could benefit UK businesses importing from the EU and holidaymakers looking to book an Easter break or summer holiday on the continent.”

While the stronger Pound could make trips to Europe slightly cheaper, analysts say the move reflects weakness in the Euro as much as strength in the UK economy.

Prem Raja, head of trading floor at Currencies 4 You, said markets have become less confident that the Bank of England will cut rates in the near future as inflation risks rise again.

“The Pound’s recent strength against the Euro is less about strong UK fundamentals and more about relative market pricing,” he said.

“At the same time, the Euro has been under pressure because the eurozone is seen as more exposed to higher imported energy costs.”