Sterling falls as DUP block Irish border agreement

Sterling has come under pressure this week amidst continuing political uncertainty regarding Brexit, falling for a third day of trading against major currencies. Since Monday, around the time rumours of a deal between Ireland and the UK over details of how to treat the boarder after Brexit were dashed, Sterling has lost around 1% against the US dollar, whilst falling 1.6% against the Japanese Yen. The negative reaction stems from the inability of Theresa May's government to reach agreement with the Democratic Unionist Party (DUP) which would allow the UK to move into the second and crucial phase of Brexit negotiations during which trade agreements will be made. Markets have generally been favouring buying UK government debt over equities in a week where riskier assets, so far, appear less attractive.