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Christmas getaways: where your Pounds will go furthest this year

ended 29. November 2024

Cancun, Canada, Turkey and Hungary are just some of the countries where the Pound currently has favourable exchange rates for a Christmas getaway, forex specialists have said. They also share their tips for spending while abroad. 

Tony Redondo, Founder at the Cosmos Currency Exchange, says: “The Pound is performing well against several currencies at present, offering great options for sun, ski or city breaks this Christmas. Against the Mexican Peso, it is up over 20% this year, ideal for Cancun, a popular destination for Brits. Nearly a 17% increase against the Turkish Lira makes Turkey a winter sun destination, too. Sterling is up over 12% against the Hungarian Forint, perfect for a Budapest city break. If you want more reliable snow than Europe, the Pound is up nearly 6% against the Canadian Dollar. If the slopes aren't for you, Toronto and Vancouver may be appealing. The Pound is also up nearly 4.5% against the Euro, great for winter sun in Portugal and Spain or skiing in Italy and France."

Prem Raja, Head of Trading Floor at Currencies 4 You, adds: “Though the Dollar has taken centre stage from a strength perspective over the past month, the Pound is still performing very well against currencies such as the Euro, currently at a 2-year high, the Turkish Lira, Swedish Krona and the Mexican Peso, all good destinations for the winter if you are looking for a Christmas break while getting some bang for your buck.”

Gabriel McKeown, Head of Macroeconomics at Sad Rabbit Investments, said the Pound's strength, a result of the Bank of England's more hawkish stance compared to other central banks, offers “a golden opportunity” for Brits. He says they may want to check out South America, Asia, Europe and the Caribbean. The views of four experts are below.

4 responses from the Newspage community

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Tony Redondo
Founder at Cosmos Currency Exchange
The Pound (GBP) is performing well against several currencies at present, offering great options for sun, ski or city breaks this Christmas. Against the Mexican Peso, it is up over 20% this year, ideal for Cancun, a popular destination for Brits. Nearly a 17% increase against the Turkish Lira makes Turkey a winter sun destination, too. Sterling is up over 12% against the Hungarian Forint, perfect for a Budapest city break. If you want more reliable snow than Europe, the Pound is up nearly 6% against the Canadian Dollar. If the slopes aren't for you, Toronto and Vancouver may be appealing. The Pound is also up nearly 4.5% against the Euro, great for winter sun in Portugal and Spain or skiing in Italy and France. When abroad, always pay in the local currency to avoid poor rates. Use ATMs for fee-free withdrawals and avoid airport kiosks full stop. Also consider prepaid travel cards that lock in exchange rates. Do this and you can maximize your spending power while enjoying your holiday.
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Prem Raja
Head of Trading Floor at Currencies 4 You
The Pound has enjoyed a decent amount of strength throughout 2024 thanks to positive data in the UK. Though the Dollar has taken centre stage from a strength perspective over the past month, the Pound is still performing very well against currencies such as the Euro, currently at a 2-year high, the Turkish Lira, Swedish Krona and the Mexican Peso, all good destinations for the winter if you are looking for a Christmas break while getting some bang for your buck.
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Gabriel McKeown
Head of Macroeconomics at Sad Rabbit - Substack Newsletter
As the festive season approaches, British holidaymakers are poised to benefit from the Pound's robust performance, offering a golden opportunity for those planning their Christmas getaway. Sterling has demonstrated remarkable resilience, outperforming several major currencies, giving savvy travellers enhanced purchasing power in popular destinations worldwide. Despite a challenging year for the UK, the economy is showing signs of stability, attracting foreign investment, and the Bank of England's more hawkish stance compared to other central banks has bolstered Sterling's appeal. This will translate directly into increased purchasing power for UK tourists in destinations like South America and Asia, with the Pound's strength particularly pronounced against emerging market currencies, creating lucrative opportunities for holidaymakers. Whether drawn to the festive markets of Europe or the sun-soaked beaches of the Caribbean, Brits can expect their cash to go further this holiday season.
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Riz Malik
Independent Financial Adviser at R3 Wealth
If you're planning to make any significant purchases abroad, it is usually best to make them on plastic. You typically get access to better conversion rates and may also get some cashback depending on the provider. However, don't assume the credit card you opened as a student is the best option or that all credit card providers charge the same. Shop around and pay close attention to foreign transaction fees.