Sterling slipped from a six-month high against a trade-weighted basket of currencies on Monday after European Commission President Jean-Claude Juncker and British Prime Minister Theresa May failed to reach an agreement on a divorce deal. Sonia Legg reports
The day started with high hopes. All the talk was of an agreement between Britain and the EU - not on Brexit itself of course but at least on stage one of the negotiations. Sterling responded by hitting a one month high against the euro. Then came the body blow which sent it tumbling. (SOUNDBITE) (English) EUROPEAN COMMISSION PRESIDENT, JEAN-CLAUDE JUNCKER, SAYING: "Despite our best efforts and the significant progress we and our teams have made over the past days on the remaining issues, it was not possible to reach a complete agreement today." The EU Commission President insisted the lack of an agreement was "not a failure" saying a deal was still possible before a key EU summit next week. (SOUNDBITE) (English) BRITISH PRIME MINISTER, THERESA MAY, SAYING: "It is clear that crucially we want to move forward together but on a couple of issues, some differences do remain, which require further negotiation and consultation and those will continue but we will reconvene before the end of the week and I am also confident that we will conclude this positively." London has broadly agreed to many of the EU's "divorce" terms Including paying out around 50 billion euros. But the border between Northern Ireland, which is part of Britain, and the Republic of Ireland in the euro zone - has been a sticking a point. A deal would have also meant negotiations could have moved on to trade. (SOUNDBITE) (English) PETER DIXON, GLOBAL FINANCIAL ECONOMIST, COMMERZBANK, SAYING: "The UK is at least is waking up to the real politic of its position whereby it's going to have to give a lot more to the EU than many of the Brexit voters wanted in order to get the trade deal that it needs." Scotland, Wales and London may well have contributed to the failure All three regions want to benefit from any special deal Northern Ireland gets as the majority of their voters wanted to remain in the EU.