Boost for Pound as Trade War Fears Hit Euro: Pound Sterling Surpasses €1.21 for the First Time Since March 2022

British holidaymakers will get more value for their money on the Continent this winter as the pound rises against the euro.

In a boost for families planning ski holidays and other holidays in Europe, the pound rose above €1.21 for the first time since March 2022.

The euro also tumbled to $1.06 against the dollar – its lowest level since April – with analysts warning the two currencies are heading towards ‘parity’.

A British tourist exchanging £500 for €1.21 would get €605, compared to the €550 he would have received in the aftermath of the mini-Budget in autumn 2022, when the pound fell to €1.10 .

A €200 ski pass in the French Alps now costs £165, compared to around £175 last winter.

The pound has risen against the euro on fears that tariffs imposed by Donald Trump when he returns to the White House will hit the European economy hard.

Trump has threatened to impose tariffs on all imports to the US, but there is speculation that Britain could avoid the measures through a trade deal.

ING analyst Chris Turner said Britain “may not be at the center of the looming trade war.”

The prospect of Britain outperforming the eurozone in such conditions helped the pound rise.

A report from Goldman Sachs analysts said the hit to the eurozone economy from US tariffs could cause the euro to fall ‘below parity’ against the dollar.

‘In contrast, the report labeled the pound as ‘a diamond in the rough’.