- Sterling drops sharply after Juncker confirms no agreement on the Irish border yet.
- Earlier in the day sterling had climbed sharply on reports to the contrary.
- Pound trading at €1.1360 just after 4.00 p.m. GMT.
LONDON – The pound dropped sharply against the euro on Monday afternoon following an announcement from the European Commission President Jean Claude Juncker that British and EU negotiators have failed to reach a deal on the Irish border after hours of talks.
Around 3.50 p.m. GMT, sterling fell off a cliff after Juncker confirmed that talks on the border question have so far failed to end in an agreement. Britain’s currency fell from around €1.1410 against the single currency to a low of €1.1340, before recovering a little ground, as the chart below illustrates:
Earlier the pound jumped after reports that Britain had made an important concession in Brexit negotiations on the issue of the Irish border.
A report from Irish broadcaster RTE said that the UK had conceded that there “will be no divergence of the rules covering the EU single market and customs union on the island of Ireland post-Brexit.” Belgian MEP Philippe Lamberts told the European Parliament the same thing.