The exchange rate has risen to €1.088 after falling to an eight-year low of €1.075 on Tuesday.
Sterling has made a slight recovery ahead of data released out of the Eurozone today.
Inflation figures could send the rate in either direction, depending on whether they beat expectations.
TorFX currency analyst Laura Parsons said: “After hitting a new eight-year low on Tuesday, the GBP/EUR exchange rate was able to recover half a cent on Wednesday as sterling edged slightly higher against the majors.
A number of economists have now forecast the pound could reach parity with the euro by the end of 2017.
Kathleen Brooks, research director at City Index, said: “We continue to think that the outlook remains bleak for sterling, especially after EUR/GBP surged above 0.92 last week and the trade weighted pound also dropped to a fresh low.
“Sterling hasn’t had a strong reaction to “good” political news since June 2016, suggesting that the FX market is still expecting Brexit to be a shambles.”
Currency experts have warned holidaymakers to plan ahead in order to get the best rate for Europe holidays.
Ian Strafford-Taylor, CEO of FairFX said it’s never been more important to prepare well in advance, as the euro gathers strength.
He added: “The pound continued to perform poorly against the euro and dollar last week, meaning any holidaymakers that left currency to the last minute may have found a bank holiday break to Europe or the US more expensive.
“Those looking ahead to holidays in the coming months may want to lock in an exchange rate on a prepaid card, allowing them to know how much foreign currency they’ll have for their trip.”
