According to Bloomberg, Merkel told Prime Minister Boris Johnson that Northern Ireland has to remain part of the customs union in any deal, which Johnson says has paved the way for a no-deal Brexit. The latest comments have increased tensions between the two ahead of a summit next week and decreased the chances of a deal being struck.
The European Union has insisted that there is a way for controls to flow across the Irish border without additional checks and that Northern Ireland remain in the customs union until an alternative solution is found, which the U.K. has pushed back against.
EUR/USD inched down 0.1% to 1.0956.
Elsewhere, the U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was steady at 98.808.
Stay updated with INFOEUROPEFX to find out the latest news about