Strong pound helps tourists but hits firms and exports

Union Jack

The pound has gained over 5% on the euro this year as Britain's comparatively strong economy has outpaced most of the Continent. According to Lloyds, sterling has gained value against 42 of the 74 currencies it examined. The Bank of England has helped fuel the strength of sterling by pointing to interest rate increases in 2015 after economic expansion of around 3% this year. The pound's climb has made trips to the eurozone cheaper for British tourists, but the price difference makes it even harder for UK firms to export to countries that are already under strain from sluggish growth and patches of deflation.

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