Parity means one UK Pound buys one Euro, but is it possible for the Pound to Euro exchange Rate to reach parity before the UK summer holidays begin in 2016?
Yes it could happen if the vote for the UK to remain or leave the European Union goes in favour of the leave campaign. The vote takes place on Thursday 23rd June and on the 24th June the Pound to Euro exchange rate will either increase in the Pounds favour or fall depending on who wins the vote, those who choose to leave or those that voted to stay in.
Lets see what that could mean if the vote goes in favour of the UK leaving the EU.
This is based on a typical holiday to Spain and the Pound to Euro at parity:
Cost of a few items when on holiday in Spain based on today's Euro exchange rate 01/03/2016.
The cost of a pint of beer currently £1.50 could rise in cost to £2
McDonalds Combo Meal currently £5.50 could cost you £7
Meal for 2 in a mid range restaurant currently £31 could cost £40
Should you Buy Your Euro Travel Money Now or Wait?
There is no easy answer to the above question as it depends on whether you believe the vote will go in favour of remain in or leave the EU.
Your Euro Travel Money Options:
Wait until after the vote and if the vote goes in favour of the leave campaign your Pounds will buy considerably less Euros for your money than it would today.
Buy now and if the vote goes in favour of the "remain in" campaign then you will not take advantage of the large rise in value of sterling in the days after the result of the vote is announced.
How will the country vote? Here's a poll to give you an idea as to the possible outcome.
Poll taken from website http://whatukthinks.org 01/03/2016
Whatever you decide, be comfortable with your decision.