Sterlings Foreign Exchange Rate Against Euro Helps Holiday Makers

With Sterling hitting its highest exchange rate against the Euro since December 2008, holiday makers travelling to Europe this summer will see some major benefits.

Sterling is trading at around 1.19 Euros to the pound today as investors continue to worry about the Spanish economy, the dire situation in Greece and political pressures in Germany. These fears are contributing to a significant weakness in the Euro and Brits travelling to Europe this summer stand to benefit.

Do you remember how strong the Euro was against the Euro last summer? It came close to parity with the pound meaning that one pound was worth only one Euro. In fact many foreign exchange suppliers were supplying Euros at parity, making prices in Europe very expensive for Brits.

The pound will now buy nearly 20% more Euros now, so European prices will seem more reasonable now. During the summer months, however, it is very likely that the Euro will fall further, particularly if the Spanish difficulties intensify and the contagion spreads to other European countries too.

Portugal, Italy and Eire are all vulnerable at the moment, making the future of the Euro look very dodgy indeed.

So as the Euro crumbles under the weight of sovereign debt, consider booking that trip to Europe and enjoy the cheaper prices at last.

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