Pound slips against the Euro and Dollar as Brexit talks hit ‘standstill’

THE value of the pound has taken a tumble this morning against the euro and the dollar as Brexit talks hit a "standstill".

Sterling stood at 1.157 against the euro this morning, before slipping to 1.150, although it has recovered somewhat to 1.156 at the time of writing.

This means £1 is worth about €1.15.

Against the US dollar, the pound peaked at 1.2785 earlier today before falling to 1.268, although at the time of writing at 12.30pm it was back around the 1.276 mark.

This means £1 would buy you about $1.27.

It comes as EU sources today said Brexit talks had hit a "stumbling block" and were now at a "standstill".

Both sides missed a midnight Brexit deadline to seal a deal last night - leaving Prime Minister Boris Johnson with 48 hours before he might have to seek a third delay.

Talks are said to have hit a "stumbling block" today over two crucial issues of customs, and consent for Northern Ireland's rules.

Only yesterday, the pound hit its highest level in FIVE months versus the euro amid hopes of a Brexit deal.

That said, the pound is still up today against both the euro and dollar compared to this time a month ago.

On September 16, the pound was at 1.129 against the euro and at 1.242 against the dollar.

But sterling is still down massively compared to its pre-referendum levels in June 2016.

Back then, £1 would get you €1.4271 or $1.588.

Michael Brown, senior market analyst at currency firm Caxton, says the direction of the pound going forward depends on how Brexit negotiations continue.

He said: “Sterling is trading in a choppy, headline-driven manner this morning, with UK-EU talks continuing in an effort to try and reach a Brexit deal.

“The direction of the pound will depend on the outcome of talks, as well as whether any UK-EU agreement is likely to have the votes to pass in the Commons.

"Increasing likelihood of a deal would result in sterling moving to the upside; while a lower likelihood of an agreement would see sterling decline.”

Political decisions often affect the value of the pound.

For example, the pound hit a six week high against the dollar and the euroafter it appeared Prime Minister Boris Johnson may get a Brexit deal.

While the pound soared against the euro and dollar back in March after MPs voted to rule out a no deal Brexit.