Sterling falls as EU officials play down the prospect of a Brexit deal

Sterling takes another pounding after EU officials play down the prospect of a Brexit deal

The pound shed as much as 0.9 per cent yesterday as EU officials played down the prospect of a Brexit deal breakthrough

Sterling lost some of its lustre yesterday amid concerns that a Brexit deal is still some way off.

Investors piled into the pound last week as it seemed that Boris Johnson was closing in on a deal with the EU following talks with his Irish counterpart Leo Varadkar.

That was enough to drive up sterling more than 4 per cent against the dollar over Thursday and Friday, the biggest two-day rise since the financial crisis. 

But the pound shed as much as 0.9 per cent yesterday, falling as low as $1.25, as EU officials played down the prospect of a breakthrough in the coming days.

The FTSE 100 also shed 0.5 per cent, falling 33.63 points, to 7213.45.

 

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