The pound has been struggling against the euro in recent months, and experts are now warning that it could fall even further before the end of the year
Travel specialists have issued fresh guidance to UK holidaymakers planning trips to Spain, France, Greece, and other European destinations. With temperatures now noticeably dropping and daylight hours shortening, many Britons will be considering escaping to warmer, sunnier climes.
Nevertheless, anyone contemplating a winter break is being urged to act swiftly rather than delay when it comes to exchanging currency. This recommendation emerges as the pound remains under pressure, with £1 currently securing approximately €1.15, a decline from €1.21 recorded earlier this year.
Amid economic stagnation, rising inflation and the anticipated Budget approaching, experts have warned that Sterling is expected to weaken further against the Euro to roughly €1.11 before 2025 concludes. Consequently, they’re encouraging travellers to lock in exchange rates and purchase Euros immediately to avoid higher costs later.
Tony Redondo, founder at Cosmos Currency Exchange, stated he expects the pound’s decline to persist. He continued: “The Pound has fallen over four per cent against the Euro in the past year and faces continued pressure heading into 2026 due to recession fears and pre-budget uncertainty.
“Goldman Sachs forecasts another three per cent decline to €1.11, though some analysts expect range-bound trading given economic troubles across major Eurozone economies. British travellers planning winter trips to Spain, Portugal, or European Christmas markets should consider buying Euros now, as Sterling will likely weaken further before the Budget.”, reports the Liverpool Echo.
“For better rates, avoid airport exchanges and use pre-loaded travel cards supplemented with small amounts of cash for taxis and street market spending.”
Prem Raja, head of the trading floor at Currencies 4 You, is also advising people to get their Euros now. He said: “Sterling enjoyed a very positive start to 2025, but we have seen the tide change over the last few months, mostly due to disappointing UK economic figures and worries about the UK Government deficit and spending plans.
“So far we have seen Pound to Euro fall from 1.18 down to 1.14 – with expectations that we could see Pound to Euro one to two per cent lower by year end – this is due to further Bank of England cuts expected and jitters around the next UK Budget. If you are looking to buy Euros, it is probably best to move sooner rather than later to lock in a higher exchange rate.”
