The UK and the European Union ended a flurry of top-level diplomatic negotiations on Monday without reaching a deal on the terms of their divorce, as an agreement on the status of the Irish border continued to remain the main sticking point. However, leaders from both the sides said they were within striking distance of arriving at a consensus, setting the stage for hectic back-channel talks ahead of a key EU summit next week.
Prime Minister Theresa May is under increasing domestic pressure to reach an agreement on the divorce issues before EU leaders meet on December 14th to determine whether to kick-start talks on post-Brexit trade arrangements. The British Pound fell sharply against the US Dollar following a joint press conference by European Commission President Jean-Claude Juncker and Theresa May announcing no deal had been reached. The GBPUSD pair gave further ground early Tuesday to currently hover around 1.3450.