The pound has now reached a seven year high against the euro of €1.34 and looks set to keep increasing.
The European Central Bank (ECB) took the ultimate policy leap last Thursday and launched a government bond-buying program which will pump hundreds of billions in new money into a sagging euro zone
Mark Carney, governor of the Bank of England, called the ECB's action a "welcome step" and "absolutely necessary to preserve the prospects of medium-term prosperity in Europe".
The 1.1 trillion euro stimulus plan was launched to tackle lacklustre growth and the spectre of deflation in the 19 nation currency zone.
An increased supply of euros should make borrowing cheaper and encourage businesses and consumers to spend more.
Share markets responded positively with indexes in London, Frankfurt, Madrid and Paris all rising on Friday following gains on Thursday. Shares in Athens leapt more than 5%.
By September next year, more than 1 trillion euros will have been created under quantitative easing, the ECB's last remaining major policy option for reviving economic growth and warding off deflation.
One side effect of the huge amount of new money being pumped into Europe means much, much cheaper holidays in France. A strong Pound and weakening Euro equals plummeting costs in France for British holidaymakers- cheap fuel, restaurants, groceries and even ice creams !!!!!!!!!!!
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