After pushing to €1.1908, the pound tanked versus the euro late in the US session. The pound dropped to a low of €1.1819, near to where it closed the session. The pair remains under pressure in early trade on Wednesday.

The pound tanked following the release of the latest YouGov MRP poll. This is the poll that famously predicted that Theresa May would lose her majority in 2017.  The MRP poll showed that the Tory lead is receding with just one day to go until the general election. This poll shows that the chances of a hung Parliament are now greater than previously. The pound dropped as a hung parliament is tied to further indecision and delay over Brexit meaning that the lingering Brexit uncertainty that has weighed on the UK economy could continue.

A slew of worse than expected data on Tuesday also dampened demand for the pound. UK GDP data, industrial output and construction data as well as the UK trade balance all surprised to the downside, painting a pretty grim picture of the UK economy as it approaches the end of the year.

With no data to distract, it is all about the polls for sterling today.

Euro Buoyed By Encouraging ZEW Data

The euro was broadly in demand in the previous session, just fractionally less than the pound. Euro investors cheered improved sentiment in both the eurozone and Germany. German investor sentiment brightened to the strongest level in almost two years. The ZEW sentiment survey index increased from -2.1 to a better than forecast 10.7. This was its first positive reding since April amid optimism that trade tensions between the US and China are slowly dissipating.

The data, along with unexpectedly strong German export data earlier in the week has helped boost hopes that Europe’s largest economy will avoid a contraction in the final quarter. There is growing optimism that the slowdown could be bottoming out.

Today there is no high impacting eurozone data due to be released. However, several important US data points and the FOMC rate decision to come. Given that the euro trade inversely to the dollar, the euro could experience heightened volatility on the back of dollar movements.

What do these figures mean?
When measuring the value of a pair of currencies, one set equals 1 unit and the other shows the current equivalent. As the market moves, the amount will vary from minute to minute.

For example, it could be written:

1 GBP = 1.13990 EUR

Here, £1 is equivalent to approximately €1.14. This specifically measures the pound’s worth against the euro. If the euro amount increases in this pairing, it’s positive for the pound.

Or, if you were looking at it the other way around:

1 EUR = 0.87271 GBP

In this example, €1 is equivalent to approximately £0.87. This measures the euro’s worth versus the British pound. If the sterling number gets larger, it’s good news for the euro. is a news site only and not a currency trading platform. is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.