UK PM Johnson's spokesman: A deal is still possible but we need more realism from EU

"We need to agree on a mechanism to resolve any future disputes with the European Union (EU)," British Prime Minister Borish Johnson's spokesman reiterated on Tuesday. "We do think a deal is still possible but we need to see more realism from the EU."

Additional takeaways

"Cabinet was told that govt is working closely with the business to get ready for Britain leaving the EU's customs union and single market on December 31st."

"UK is fully committed to implementing the Withdrawal Agreement and the Northern Irish protocol."

"Government cannot allow a damaging situation to arise if the UK, the EU do not agree on details of the Withdrawal Agreement and the Northern Irish protocol."

"We must ensure that the principle of Northern Ireland being a part of the UK's customs territory is not compromised."

"The UK is not going to become a high-subsidy regime at end of transition, will set out more on state aid regime in due course."

Market reaction

The GBP/USD pair remains under heavy selling pressure on Tuesday and was last seen losing 1% at 1.3035.