British holidaymakers will get more bang for their buck on the Continent this winter as the pound soars against the euro.
In a boost for families planning skiing trips and other breaks in Europe, sterling topped €1.21 for the first time since March 2022.
The euro also tumbled towards $1.06 against the dollar – its lowest level since April – with analysts warning the two currencies are heading for ‘parity’.
In a boost for families planning skiing trips and other breaks in Europe, sterling topped €1.21 for the first time since March 2022.
A British tourist changing £500 at €1.21 would get €605 compared with the €550 they would have got in the aftermath of the mini-Budget in autumn 2022 when the pound fell towards €1.10.
A €200 ski-pass in the French Alps would now cost £165 compared to around £175 last winter.
The pound has rallied against the euro amid fears that tariffs imposed by Donald Trump when he returns to the White House will hit the European economy hard.
Trump has threatened to put tariffs on all imports to the US but there is speculation Britain could avoid the measures through a trade deal.
ING analyst Chris Turner said the UK ‘may not be front and centre in the looming trade war’.
The prospect of Britain faring better than the eurozone under such circumstances helped push up the pound.
A report by Goldman Sachs analysts said the hit to the eurozone economy from US tariffs could see the euro fall ‘below parity’ against the dollar.
‘By contrast, the report labelled the pound ‘a diamond in the rough’.
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