Due to concerns amongst investors about the health of the European banking sector, the pound is now worth 1.23 euros, its highest level since November 2008. This also represents a 16% increase in value compared to the 12 month low of 1.06 euros in October 2009.
Currency experts are predicting that the pound could continue to strengthen against the Euro until at least September, when European banks will be reporting on the state of their finances. The pound has also strengthened as a result of the latest round of austerity measures announced by the new coalition government.
This is all good news for money saving holidaymakers travelling to the eurozone this summer, and especially France where travel costs can also be much lower than other destinations further afield.