Sterling continues to drop on Tuesday following news on Monday that no deal has been reached between the UK and EU on the Irish border.

The pound is falling against both the dollar and the euro, extending losses seen on Monday afternoon.



LONDON — The pound is falling once again on Tuesday morning as investors continue to react to stalled Brexit talks.

The UK and EU announced on Monday afternoon that they are still unable to agree a deal on the Irish border, a key stumbling block in Brexit talks.

Late on Monday afternoon, British Prime Minister Theresa May and European Commission President Jean-Claude Juncker held a joint press conference, announcing that, while "progress" had been made, some issues surrounding the Northern Ireland-Republic of Ireland border still need to be ironed out.

"Despite our best efforts and significant progress teams have made in recent days, it was not possible to make a complete agreement today," May said.

That announcement sent the pound sharply lower against both the euro and the dollar, and those drops have kept going on Tuesday, with sterling down around 0.5% against both.

As of just before 8.20 a.m. GMT (3.20 a.m. ET), the pound is 0.46% lower against the dollar to trade at $1.3416, while it is 0.38% down on the euro at €1.13, as the charts below illustrate:





"GBP gave back some of its recent gains on reports that the discussions between Prime Minister May and EU Commission President Juncker had ended on Monday without a formal agreement," the analyst team at FxPro said in an email on Tuesday morning.

"The Prime Minister is under pressure to get an agreement on EU divorce issues before European leaders meet on December 14th to decide whether to give formal approval to start talks on post-Brexit trade."