Pound Forecast 2026 – What a Strong or Weak GBP Means for Holiday Money

Updated • Read time: ~7 minutes

The value of the pound affects everything from your holiday spending money to overseas card fees. Here’s a simple guide to how GBP strength or weakness could impact travel money rates in 2026, plus a few practical tips for buying foreign currency at the right time.

Quick take: A stronger pound means your travel money goes further. A weaker pound means the opposite — but comparing providers and avoiding airport rates can save far more than small market swings.

How the pound affects travel money rates

When the pound strengthens against other currencies, you get more foreign currency for every £1. When it weakens, your pounds buy less. Most travel money providers base their retail rates on live wholesale market rates, so GBP movement filters through quickly.

If the pound is… Impact on your holiday money
Stronger You get more euros/dollars for your pounds; holidays abroad effectively become cheaper.
Weaker You get fewer euros/dollars; travel costs more. Time purchases earlier if markets look uncertain.

What could move GBP in 2026?

  • Bank of England interest rates: Rate cuts tend to weaken GBP; higher rates support it.
  • Inflation trends: Persistent inflation may push the pound up if the Bank stays cautious.
  • Global growth & US dollar strength: A stronger USD often pulls GBP lower.
  • Political stability: Election years and policy uncertainty can cause short-term volatility.

Forecasts vary, but most analysts expect moderate GBP volatility through 2026 — not the dramatic swings of previous years. The key takeaway: what matters more is how you buy your currency, not guessing the exact market move.

When to buy holiday money in uncertain times

  • Split purchases: If you’re unsure, buy 50% now and 50% later — a simple way to average the rate.
  • Set rate alerts: Many providers let you track when GBP strengthens against your target currency.
  • Order early for holidays: Delivery times tighten in peak seasons; early orders mean better choice and lower stress.
Tip: Even if GBP falls by 2–3%, comparing providers can easily save 5–10%. Focus on fees and margins, not forecasts.

Does GBP strength affect travel cards?

Yes — but less directly. Travel money cards like Wise or Revolut use interbank or close-to-market rates, so they reflect currency movements almost instantly. If GBP weakens, your spending power abroad dips, but you still avoid retail mark-ups.

Bottom line

Nobody can predict the pound perfectly. The best defence is comparing rates, ordering early, and mixing a reliable travel money card with some cash. That way, your holiday budget goes further — whatever the markets do.

Compare live travel money rates
Live rates from trusted UK currency suppliers – updated every 15 minutes.