Chief EU Negotiator Michel Barnier has said "To put things frankly, we are not really in a position where we can find an agreement" The comments from the French statesman follows an unfruitful conversation between UK Prime Minister Boris Johnson and German Chancellor Angela Merkel on Tuesday, after which hopes for an accord fell sharply.

European Commission President Jean-Claude Juncker has added that he does not exclude a Brexit deal and that they are working on one. The outgoing head of the commission added that the EU refuses to accept the blame game started in London.

GBP/USD is pressured, closer to 1.22. Support below the round number awaits at 1.2155, and the day's high is 1.2291.

Earlier, EU diplomats have been briefed that the most contentious issues regarding Brexit, including border checks, the role of the Stormont Assembly, and customs arrangements were not discussed with the UK.