The pound fell to the lowest level for more than two years last night when the government stepped up preparations for a No Deal Brexit.
Sterling fell to $ 1.22 in international currency markets and to 1.10 euros, a drop of more than 1.3 percent in one day.
Boris Johnson insisted yesterday that there was a "very good chance that we could close a deal" if the EU agreed to give up the Irish backstop.
Johnson's new Brexit "War Cabinet" held its first formal meeting in Whitehall yesterday, with Michael Gove taking over as the Prime Minister visiting Scotland. Johnson was shown yesterday at HMS Victorious in Faslane, Scotland
But Downing Street confirmed revelations in yesterday's Daily Mail that the Prime Minister has no plans to have face-to-face conversations with EU leaders unless they meet his condition to rupture the Theresa May deal.
A # 10 spokesperson said, "The Prime Minister is clear that he wants to meet and negotiate with EU leaders, but does not want to sit down and be told that it is impossible for the EU to reopen the revocation agreement."
Sources have also confirmed that Mr. Johnson has not yet spoken with the Irish Taoiseach Leo Varadkar, who is considered crucial for any hope of EU withdrawal.
Analysts yesterday directly linked the fall in the pound to the growing market concerns about the possibility of No Deal. A stock image is used above [file photo]
Sterling fell to $ 1.22 in international currency markets and to 1.10 euros, a drop of more than 1.3 percent in one day. This image shows how the pound has fallen by more than 3% over the last month against the dollar
Johnson's new Brexit "War Cabinet" held its first formal meeting in Whitehall yesterday, with Michael Gove taking over as the Prime Minister visiting Scotland.
But Mr. Johnson risked confusion when he seemed to contradict Mr. Gove's assessment of No Deal.
Gove said the weekend government still hoped the EU would reverse a deal and close a deal, but had to assume that they would not do so.
When asked if Mr. Gove was right to say that the government should work on the assumption that it was on its way to No Deal, Johnson said: "No, absolutely not. My assumption is that we can close a deal, we strive for a deal. & # 39;
None of them insisted that Mr Johnson's comments were consistent with what Michael Gove said & # 39 ;.
The prime minister also seemed to repeat his opinion that the chances of a No Deal Brexit were "a million against".
Asked if he kept the prediction, he replied: "Provided there is sufficient goodwill and common sense with our partners, that is exactly where I would put the opportunities."
He added: "We are striving for a new deal … and that is what I think we can achieve from all sides with good will.
"But it has long been the government's policy to prepare for No Deal and that is what we are going to do with a big heart and growing confidence – we will prepare for a No Deal Brexit.
& # 39; If our friends and partners in Brussels will not change the withdrawal agreement, if they do not meet the will of the Parliament, which has now said three times that they cannot accept the backstop, then of course you would expect us to prepare and that is what we will do. & # 39;
Analysts yesterday directly linked the fall in the pound to the growing market concerns about the possibility of No Deal.
The pound fell to the lowest level for more than two years last night when the government stepped up preparations for a No Deal Brexit. A stock image is used above [file photo]
Connor Campbell, financial analyst at Spreadex, said: "An already bad start turned into a complete panic attack for Sterling.
"It seems as if the Boris Johnson government is actively looking for a No Deal Brexit, the newly anointed prime minister who allegedly refuses to meet with EU leaders unless the uncontested Irish backstop is canceled.
"Add to this a weekend full of headlines about increased No Deal planning, and the pound had put the fear of God into it."
Foreign Minister Dominic Raab suggested that leaving the EU without a deal would strengthen the UK's hand in future trade negotiations with Brussels.
He told BBC Radio 4 & # 39; s Today program that the "stubborn" behavior of the EU would be to blame if the UK left without a deal.
But he added: "The prospect of returning and getting a good deal will be easier if we are gone if that is the case. The reason for this is that we work as an independent third country and are less subject to the requirements of the EU as we are today. & # 39;
The new Brexit war cabinet, known as the Exit Strategy Committee or XS, consists of six senior ministers and meets twice a week.
A major advertising campaign, reportedly costing up to £ 100 million, is also planned to make the public aware of Brexit issues.
But ministers have left proposals to send a folder to every house for fear that it would be a waste of money. Instead, they will focus on newspaper, radio and TV ads and social media campaigns.
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