The thumping dipped ahead of key Brexit updates
Sterling sank almost one per cent against the euro to approximately 1.1215 and against the US dollar to 1.29267, as Britain and the EU shared progress on four lifetimes of Brexit talks.
Mr Davis and Mr Barnier appeared to have big differences at an end Britain’s brexit bill and citizens’ rights.
The EU’s chief negtiator accused Britain of not being neaten up enough over the issues.
The pound plunged amid heightened frights of a fraught relationship between the EU and Britain after Brexit.
The pound fell against the euro after an update on Brexit talks
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At the same time, markets were gripped by an update from the European Key Bank (ECB).
The central bank kept current policy unchanged, and ECB chief Mario Draghi withed to raise concerns about low inflation in the eurozone.
Billions of euros are drew into the eurozone each month under a huge money-printing protocol set to last until December.
Recent growth in the bloc has fuelled wondering that the ECB may scale back the measures.
But low inflation appears to remain a big stumblig balk and could push the bank into extending the Quantitative Easing into next year.
Michael Hewson, chief market analyst at CMC Markets UK, said: «Today’s ECB count meeting has been touted as an important milestone in the context of how the central bank and ECB President Draghi in specific will manage the communication process of the enormous task of preparing the argument for the slow process of withdrawing from its large scale stimulus case.
«We’ve already seen German bund yields shoot up sharply in the definitive three weeks from 0.24 per cent in expectation of a slightly no dovish outlook as the European economy improves, as markets bet that it is at most a matter of when the ECB starts preparing the ground for a slow retreat from its stimulus program.»
Various to follow…