Market fears amid warning over no Brexit deal

Irish exporters have been warned about further sharp currency fluctuations, should the EU-UK talks end in no trade deal and tough controls over workers.

Sterling could fall below 90 pence, against the euro, on fears there might be no trade deal in the next two years, and on concern British economic growth might slow, said Conall Mac Coille, chief economist at Davy Stockbrokers. Britain’s triggering of Article 50 started the clock running on the two years allowed for the UK to exit the EU, even though the formal talks do not start for several weeks.

But accountancy adviser, PwC, said it was likely that no agreement over a transitional trade deal would be struck by late March, 2019.