The pound has failed to make further improvement after picking up yesterday against the euro.
Despite a slow start to the week, the exchange rate opened yesterday at €1.151 amid positive wage growth news.
Today, the pound is trading against the euro at €1.148, after being affected by the latest Brexit turmoil.
Laura Parsons, currency analyst at TorFX, spoke to Express.co.uk on the current exchange rate.
The pound has now stabilised at €1.147, but reaction to the draft Brexit deal is likely to inspire further volatility in the hours ahead
She said: “The GBP/EUR exchange rate experienced notable fluctuations yesterday as Sterling reacted to the latest Brexit developments.
“The pound has now stabilised at €1.147, but reaction to the draft Brexit deal is likely to inspire further volatility in the hours ahead.”
The latest Brexit news has caused confusion for many regarding contentious topics such as the Irish border and trading regulations.
A no-deal threat has hindered the pound in recent months, with the UK and the EU failing to make an agreement.
However, Theresa May issued a statement last night after five-hour cabinet meeting to draft the latest Brexit agreement.
Exchange rate: The pound has fallen against the euro following the draft Brexit deal announcement
Exchange rate: The pound is currently trading at €1.148
She said: “This deal, which delivers on the vote of the referendum, which brings back control of our money, laws and borders, ends free movement, protects jobs, security and our Union; or leave with no deal, or no Brexit at all.”
May is due to speak later today surrounding the 585-page agreement which has faced criticism.
This has included the “backstop” for the Irish border, which means checks between Northern Ireland the Republic will not be brought back in, but leaves the country tied to EU laws.
The document also addressed issues such as the transition period which will take place between March 2019 until December 2020.
The financial cost of leaving is also discussed, thought to be as much as £39 billion.
Exchange rate: Theresa May has faced criticism for her latest Brexit deal announcement
The pound could pick up later this week depending on the outcome of the Brexit deal negotiations.
It could also be aided by UK retail sale news for October, to be released later this week.
Ms Parsons explained: “UK retail sales data will also be of interest, with a recovery in consumer spending potentially lending the pound some support.”
The UK faced a strong summer of high street retail sales after the heatwave and the World Cup enticed people to spend.
However, the high street has struggled with shop closures, with an estimated 14 shops disappear every day.