Details of Brexit talks lead to sterling plunge
A rally in the pound that had seen it hit three-month highs against the euro collided with the hard reality of detailed Brexit talks yesterday as it lost ground against both the euro and the dollar.
After the positive mood music from the Wirral meeting between Taoiseach Leo Varadkar and British Prime Minister Boris Johnson on the potential for a deal to govern the UK's exit from the European Union, detailed talks over the weekend saw some of that optimism unravel.
By yesterday, the European Commission was warning after the weekend's talks that "a lot of work remains to be done" to get a deal done in time for October 31.
"The pound has reversed some of its gains from last week as reality sets in," said Petr Krpata, a foreign exchange strategist at ING.
The pound was trading at 87.86p to the euro yesterday, down from 87.23p on Friday.
It had hit its strongest level against the euro since Boris Johnson became Prime Minister as hopes of a Brexit deal surged on Friday.
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