As hopes of a Brexit deal between Britain and Brussels increasingly fade, the pound is facing serious volatality and is still trading down 0.93 per cent against the dollar at $1.2854. Against the Euro, the pound is trading at €1.1423.
Recent developments suggest that Prime Minister Theresa May may not get Cabinet backing for a draft Brexit withdrawal deal this week and is struggling to reach an agreement with Brussels.
Neither side can agree on how to end a temporary customs arrangement between the UK and EU, which may be needed if no free trade deal is struck before the end of 2020.
According to media reports, senior government officials negotiated until 2.45 this morning in a bid to break the deadlock, but all the talks failed.
The Prime Minister’s official spokesman also confirmed: “We want to make progress as quickly as possible in these negotiations but as we’ve also said that cannot be at any cost. That remains our position. There remain significant issues to resolve in relation to the backstop. That is why we are negotiating.”
MP Jo Johnson had resigned on Friday citing the Brexit deal and more ministers could follow this week.
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