Brexit no deal ‘would hit sterling’

The EU is likely to confirm this week that Brexit talks have not made sufficient progress to move onto discussions about a future trading relationship, though the UK will be hoping it will consider a two-year transition period.

The pound rallied above $1.33 on that prospect last week, before a spokesman for German Chancellor Angela Merkel shot down the idea.

Markets are eyeing December as the next important deadline to make progress in the talks, with just over a year to go at that point until Britain leaves the European Union.