Brits planning to travel to Spain, France, Greece and other European destinations are being advised to buy their euros now rather than later, as the pound maintains its downward trajectory.
With the days becoming shorter, and conditions remaining cold and damp across the UK, many Brits will be seeking an escape to somewhere warmer and sunnier over the coming months.
£1 will currently secure €1.15 today, representing a decline from €1.21 earlier this year.
But with the economy stagnating, inflation rising and the anticipated Budget looming, specialists say the pound is projected to weaken further against the euro to approximately €1.11 before the end of 2025, and are encouraging Brits to secure and purchase their euros immediately to reduce costs.
Tony Redondo, founder of Newquay-based Cosmos Currency Exchange, said: “The pound has fallen over 4% 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 3% decline to €1.11, though some analysts expect range-bound trading given economic troubles across major Eurozone economies.
“British holidaymakers planning winter getaways to Spain, Portugal, or European Christmas markets should consider purchasing euros now, as Sterling will likely weaken further before the Budget. For better rates, avoid airport exchanges and opt for pre-loaded travel cards topped up with small amounts of cash for taxis and street market spending.”
Prem Raja, head of trading floor at Currencies 4 You, also advised Brits to secure their euros now, and 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 concerns 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 1-2% 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.”