The pound is at a near three-and-a-half year high against the euro, as the fallout from elections in Greece and France sends the region into fresh turmoil.
On Tuesday afternoon the pound was trading for around 1.20 euros, its strongest rate against the currency since the financial crisis hit in 2008.
But don't head down to the foreign exchange bureau just yet.
Richard Driver of Caxton FX told BBC news the sterling should continue to rise: "We've seen sterling climb this year as the European debt crisis has come to a head."
"Sterling has a pretty decent safe-haven status - we think it will reach 1 euro 30 by this autumn."
The development comes amid fears Greece may be forced out of the euro following elections in the country which rejected austerity plans, and the victory of socialist candidate Francois Hollande in France.
On Monday Spainish prime minister Marian Rajoy indicated they could bailout struggling banks.
A pedestrian is reflected on an election poster of Democratic Alliance party at a bus stop in Athens, Saturday May 5, 2012. Greeks head to the polls Sunday in their most critical and uncertain election in decades, with voters set to punish the two main parties that are being held responsible for the country's dire economic straits. (AP Photo/Kostas Tsironis)
A Pakistani worker decorates a canal with artificial flowers, in Lahore, Pakistan, Monday, May 7, 2012. (AP Photo/K.M. Chaudary)
Donated kits on display as part of the LV= SOS Kit Aid celebrating and Aldwinians RUFC's 75th anniversary.
Soccer - Barclays Premier League - Blackburn Rovers v Wigan Athletic - Ewood Park -An chicken wearing a Blackburn Rovers cape interferes with the game (PA)
Soccer - Barclays Premier League - Blackburn Rovers v Wigan Athletic - Ewood Park, A plane displays a banner from Burnley fans above Ewood Park before the game
A South Korean worker attaches a devotee's name tag with their wishes on a lantern, in the preparation for the birthday celebration of Buddha, which falls on May 28, at Jogye temple in Seoul, South Korea, Tuesday, May 8, 2012. About one-third of South Korea's 48 million people are Buddhists. (AP Photo/Lee Jin-man)
Ronnie O' Sullivan in action during the SAGA Insurance Masters 2007 Final at Wembley Arena, London. Picture date: Sunday, January 21, 2007. Photo credit should read: Chris Young/PA Wire.
A baby monkey clings to the leg of her mother in a park in Kuala Lumpur, Malaysia, Monday, May 7, 2012. (AP Photo/Mark Baker)
A prisoner rests his arms in the wall of his cell during a Mass for prisoners in the courtyard of La Esperanza penal center in San Salvador, El Salvador, Monday, May 7, 2012. The prisoners asked for Monsignor Fabio Colindres to hold a Mass for them at the prison. (AP Photo/Luis Romero)
A tall steel cross is refracted in rain drops on a window in Joplin, Mo., Monday, May 7, 2012. The cross is all that is left standing of St. Mary's Catholic Church, which was destroyed by an EF-5 tornado that tore through a large swath of the city and killed 161 people nearly a year ago. (AP Photo/Charlie Riedel)