10 per cent rally
The Pound has hit a 15-month high against the Euro, with £1 worth 1.21 - its strongest level since the middle of September 2010.
The increase represents a 10 per cent rally from the 2011 low, which saw Britons on holiday getting 1.10 per pound six months ago. The uncertainty spells good news for British holiday makers, who avoided the Euro zone in droves in late 2008 and 2011 due to high prices caused by the unfavourable exchange rate.
David Swann, from currency exchange Travelex, said: Despite the economic troubles of our own here in the UK, Tuesday's positive data release combined with the on-going crisis in the Eurozone, has driven the Pound up, which is good news for travellers.
The best rate For holidaymakers heading to the Euro zone, this means they are getting the best rate since September 2010. Sarah Munro, head of Post Office Travel Money, said: Sterling has been strengthening slowly but surely over the past few weeks and is now 6.4 per cent stronger against the Euro than it was back in October. Spain looks set to be the big Euro zone winner as holiday makers start making their travel plans for 2012. UK holiday makers travelling to Spain rose 8.8 per cent last year (January-August 2011) and, with resort prices pegged at last year's low levels according to our latest research, the Costas and Balearics look set to repeat that success in 2012 as they are well ahead of their Euro zone competition for value. The most obvious challenge will come from neighbouring Portugal but it remains to be seen whether debt-stricken Greece will cut food and drink prices that are currently almost twice as expensive as those in Spain.