The pound extended its losses against the dollar and the euro today as market participants became more cautious about the risk of a no-deal Brexit. 

The pound dropped last night, after a dinner between UK Prime Minister Boris Johnson and European Commission President Ursula von der Leyen ended with both sides still "far apart". 

It extended these losses early in the European session, and was down 0.8% against the dollar at $1.3292 today. 

Against the euro, it was down around 0.9% on the day at 90.925 pence. 

"Given there was no breakthrough in the talks last night, market participants are becoming more fearful over the risk of a no-deal Brexit outcome," said MUFG currency analyst Lee Hardman. 

The British currency has been jittery on Brexit headlines, dropping in response to news suggesting a deal is unlikely and rising when hopes are raised. 

Britain's transition period with the EU is due to end on December 31. Until then, it remains in the EU single market and customs union, meaning that rules on trade, travel and business have stayed the same. 

Many investment banks say that a Brexit deal will be reached at the last minute. But punters betting on the Smarkets exchange see a no-deal outcome as more than 50% likely. 

Britain has told the EU that it should make significant concessions to break the deadlock by the end of the weekend. Market participants are now focused on Sunday as a possible deadline by which progress may be made. 

Elsewhere, Britain's economic recovery almost ground to a halt in October, GDP data showed. 

"A hard exit from the EU Single Market would harm UK growth potential and thus delay the eventual recovery in UK GDP to the pre-pandemic level," wrote Berenberg senior economist Kallum Pickering.