The pound lost ground against its key counterparts in the European session on Tuesday, after U.S. President Donald Trump remarked that U.K. Prime Minister Theresa May's Brexit deal could endanger the country's chances to enter into a trade deal with the U.S.

"Right now as the deal stands she may not -- they may not -- be able to trade with the U.S. and I don't think they want that at all, that would be a very big negative for the deal," Trump said Monday.

The currency was also weighed by comments from UK Brexit Secretary Stephen Barclay, who suggested that getting the Brexit deal approved through Parliament would be a tough task.

The deal will be put to vote in Parliament on December 11.

May faces very difficulty to get Parliamentary backing on her plan as over 90 Tories reportedly pledged to go against the PM by voting against her withdrawal agreement.

European shares were mixed as oil prices resumed their slide and investors digested a fresh profit warning from Thomas Cook Group.

Analysts remain skeptical about the prospects of a U.S-China trade deal after U.S. President Donald Trump said he would likely raise the punitive tariffs on $200 billion of Chinese goods.

Trump also threatened to impose tariffs on all remaining Chinese imports, if upcoming trade talks fail to produce a deal.

The currency has been trading in a negative territory against its major counterparts in the Asian session.

Reversing from its early highs of 0.8836 against the euro and 1.2798 against the franc, the pound slipped to 5-day lows of 0.8883 and 1.2732, respectively. If the pound slides further, it may find support around 0.90 against the euro and 1.26 against the franc.

The pound fell to near a 2-week low of 1.2734 against the dollar and a 4-day low of 144.60 against the yen, from its early highs of 1.2820 and 145.54, respectively. On the downside, 1.26 and 143.00 are likely seen as the next support levels for the pound against the dollar and the yen, respectively.

Looking ahead, U.S. consumer confidence for November, Federal Housing finance agency's house price index and S&P Case-Shiller home price index for September are due in the New York session.

At 2:30 pm ET, Atlanta Fed President Raphael Bostic will participate in a panel discussion about the economy, regulation, financial innovation, and the future of payments at The Clearing House and Bank Policy Institute's Annual Conference in New York.

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