In a worrying trajectory, the pound is down a further 0.23 per cent against the dollar at $1.2853. It is flat against the euro at €1.1096.
Talking about the markets, Fiona Cincotta, Senior Market Analyst at City Index said: “There is a sea of red in the markets this morning with the FTSE, oil and the pound all trading lower. The London index is being pulled down by oil stocks and travel operator TUI with moves slightly exaggerated as trading floors are quieter than usual because of the summer holidays. Most European indices are also trading in negative territory with the exception of the DAX, which is struggling around the flat line.”
Sterling has been under pressure following comments from Liam Fox and Bank of England Governor Mark Carney about the possibility of a no-deal Brexit when the UK leaves the EU next year.