The pound sterling hit further lows on Monday morning, after a UK government minister warned of the likelihood of a no-deal with regards to Brexit negotiations.
Liam Fox MP, the International Trade Secretary said in an interview with the Sunday Times, that the chance of a no-deal now stood at 60-40.
The comments sent the pound sterling down 0.3 per cent to $1.2954, its lowest since July 19, and marking a 11-month low.
The remarks echo comments made by Bank of England Governor, Mark Carney, last week, in which he warned on the “uncomfortably high” odds of a lack of deal with the EU.
Nevertheless, Downing Street attempted to dispel mounting concerns.
A government spokesperson said: “We continue to believe that a deal is the most likely outcome because reaching a good deal is not only in the interests of the UK it is in the interests of the EU and its 27 members.
“But the international trade secretary is right to say there is a risk of the negotiations not succeeding and the government has to prepare for all eventualities.”
Meanwhile, the Shadow Brexit secretary, Keir Starmer took to twitter to express his worry over the lack of discernible progress.
He tweeted:
No deal would be a catastrophic failure of government, which no government should survive. The cause: PM’s reckless red lines, Tory divisions & fantasy Brexiteer promises. Parliament has a duty to prevent it. https://t.co/1Pq6S5FtC2
— Keir Starmer (@Keir_Starmer) August 5, 2018
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Theresa May’s government is under pressure to fulfil its proposed March 2019 deadline of completing the Brexit withdrawal process.
As it stands however, EU and UK negotiators have yet to hash out agreements with regards to major issues such as citizens rights, trade and the single market.
Prime Minister May is set to face Parliament for PMQ’s on Wednesday afternoon, where she may provide further elucidation on the trajectory of Brexit negotiations.