Pound hits strongest level against Euro in nearly one year as Britons urged: 'Buy your holiday money now!'

The Pound has climbed to its strongest level against the Euro in 10 months.

Sterling reached 1.162, prompting currency specialists to urge British holidaymakers to secure their travel money while exchange rates remain favourable.

It's trading at its highest level against the single currency since August 2025, offering a boost to those planning summer breaks in Europe.

Prem Raja, head of trading floor at Currencies 4 You, said: "Buy your holiday money now. The Pound is having one of its strongest periods against the Euro in almost a year."

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British buyers purchasing overseas property and businesses importing goods from Europe could also benefit from the Pound's recent gains.

Analysts said international investors have increasingly favoured Sterling amid expectations that UK interest rates will remain higher than those in the Eurozone.

Several factors have contributed to the Pound's appreciation against the Euro.

The Bank of England's policy rate currently stands around 150 basis points above that of the European Central Bank, making Sterling more attractive to investors seeking higher returns.

Stronger-than-expected UK economic data has also helped support the currency.

Tony Redondo, founder at Cosmos Currency Exchange in Newquay, said: "The 10-year gilt yield sits 63 per cent above the German Bund and 29 per cent above the French equivalent, drawing capital into the Pound versus the Euro."

The Euro has meanwhile come under pressure from weaker economic growth across the bloc and easing inflationary pressures.

June's Eurozone PMI figures pointed to a sharp slowdown in price growth, reducing expectations of further interest rate rises from the European Central Bank and weighing on the currency.

Markets have also responded positively to a calmer geopolitical backdrop following the recent US-Iran peace agreement.

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Mr Raja said holidaymakers, overseas property buyers and importers are "the big winners as their money goes further abroad".

Mr Redondo added: "Markets also seem willing to give Andy Burnham the benefit of the doubt or have simply priced in the 'least-bad' outcome."

He identified those benefiting from Sterling's strength, saying: "Winners: UK businesses importing from the EU, British holidaymakers heading to the Med, and anyone buying property on the continent."

However, Mr Redondo warned that risks remain, including the prospect of a leadership contest, a snap election and uncertainty surrounding the identity of the next Chancellor.

Currency experts noted that a stronger Pound can also create challenges for some individuals and businesses.

Paul Denley, chief executive at Oakham Wealth Management in London, said: "Losers include exporters, overseas earners, and UK investors with global exposure, whose foreign assets translate back into fewer pounds."

Companies exporting goods to Europe may face tougher trading conditions as British products become more expensive for customers on the continent.

Nouran Moustafa, practice principal at Roxton Wealth, said the sustainability of Sterling's rally will depend on the fiscal approach adopted by the next Government.

She said: "Any sign of unfunded spending, higher borrowing or a messy leadership process could reverse it quickly.

"A strong Pound feels good at the airport; it is less helpful if it starts hurting competitiveness."

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