Sterling dropped marginally by 0.21 per cent to 1.3144 against the dollar and by 0.11 per cent to a value of 1.1160 against the euro.

The pound slipping against the two currencies has been attributed to the UK economy, losing 14,000 positions in the job market when economists believed the country was to gain 50,000. 

Despite this the employment rate remained at 4.3 per cent.

The pound has also weakened due to mounting Brexit fears and a tumultuous Conservative party. 

The slump also follows reports the EU plans to reject the UK’s proposal for a trade deal. 

According to Politico Brussels is preparing to offer the UK a limited trade deal, similar to the agreement with Canada, which it is speculated would put London's status as a financial capital in jeopardy. 

Jeremy Stretch, Canadian Imperial Bank of Commerce’s head of G-10 currency strategy told Bloomberg: “Any newsflow which suggests a negative outcome from the EU negotiations will prove to keep the currency on the defensive.If negative political headlines are accompanied by any retail spending weakness this morning this will encourage euro-sterling back above 0.90.” 

Yesterday money managers at the 2018 Reuters Global Investment Summit said that the pound has become so weak it should be viewed as an "emerging market currency" due to the ongoing Brexit talks. 

Portfolio managers speaking at the summit said the increasing political risk, a sizeable current account deficit and large levels of debt gives Britain the appearance of a developing economy rather than an advanced one. 

Investment director Paul McNamara said: "If you look at sterling though an emerging-market (EM) prism it's a screaming sell."