Does sterling rise mean it's time to get currency?

  • @simonnread

The pound this week climbed to a 19-month high against the euro. By Thursday, you could get 1.22 euros for £1, a level not reached since August 2010.

But does that mean we should rush to snap up holiday money now, while the price is positive? Not necessarily, according to Alex Lawson, a senior broker at the foreign exchange specialist Moneycorp.

"There's a good chance that the pound could rise even further against the Euro over the next month or two, which will help people's summer holiday money go further," he said, pointing out that the change in fortunes between the two currencies is less down to strength in sterling, and more due to the weakness of the euro.

"While a temporary and uneasy truce has been declared in the eurozone debt crisis, the single currency is still looking fragile – and could easily fall further," Mr Lawson said.

If you have cash available, now could be a good time to buy holiday euros. But it could be even better to wait. One answer is to buy half now and half nearer the date of departure or when rates improve further.