---
title: "October's Strong Pound and the SPICED Effect: What It Means for Your Money"
description: The pound is at a 16-month high against the euro. What a strong pound means for holidays, imports, exporters, savings and mortgages.
author: Dr Marina Nani (Editor-in-Chief)
date: 2026-10-22T14:47:29.691Z
updated: 2026-10-22T15:11:56.890Z
canonical: https://www.sovereignmagazine.com/article/strong-pound-spiced-effect
image: https://cdn.nanimediahouse.com/pexels-5277965.webp
categories: Economy, Finance
content_type: Analysis
region: United Kingdom
publication: Sovereign Magazine
access: members
schema_type: Article
---

Every business student in Britain learns one acronym about currencies: SPICED. It stands for Strong Pound, Imports Cheaper, Exports Dearer. When the pound buys more foreign currency, the things Britain buys from abroad cost less, and the things Britain sells abroad cost more for foreign buyers.

This October, the acronym has stepped out of the classroom. On 13th October, the pound reached about 84.45 pence per euro, [its strongest level against the euro since June 2025](https://www.sovereignmagazine.com/article/pound-euro-exchange-rate-weekly-gain-uk-eu). Put the other way round, every pound bought around €1.18. Against the US dollar, the story is different, and that difference matters more to your money than the headline.

## Why the pound is strong against the euro

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