Entering the European session, pound sterling trading plummeted again after reports that the European Union (EU) and UK trade negotiators failed to close the gap in negotiations on national aid issues.
This issue is an important element that is a major obstacle for them to reach the Brexit trade agreement.
Reuters, quoting statements from officials and sources close to the matter, said they were still unsure whether the two sides would reach an agreement on the issue.
The report also states that although the EU and the UK have agreed to reach an agreement on time, the final agreement from the EU will depend on the repeal of the internal market bill, which is unlikely to happen as it has been approved by the UK parliament.
Meanwhile, President Commissioner von der Leyen is reportedly making a statement on Brexit after this, in which he will announce to impose legal action against the UK following the passage of a bill that violated the Brexit agreement.
The pound pair against the US dollar plunged lower with a decline of around 130 pips following the news.
