The British government says the United Kingdom will leave on October 31 with or without a divorce deal, and is taking steps to minimize the pain of a no-deal exit.
"More telling is sterling's implied volatility in the FX options market, which acts as a market gauge of expected movement in a currency's price, has fallen for one month's time, but increased for both three and six months".
A Downing Street source said Mrs Merkel had "made clear she thinks the EU has a veto on Britain leaving the customs union", Sky News and the BBC have reported.
Mr Johnson and an Taoiseach are to meet later this week to discuss Brexit after a phone call between the pair this afternoon.
"You don't want a deal, you don't want an extension, you don't want to revoke", he continued.
Tusk's comments were endorsed by the Irish government.
"So the main effect of it will probably be to help us win an election by uniting the leave vote and then a no-deal Brexit". "It's not us talking in that language".
Downing Street officials say Brussels is making a big mistake because failure in the coming days to reach a deal would result in Britain's position only hardening down the line.
"If this represents a new established position, then it means a deal is essentially impossible, not just now, but ever", the source added.
Johnson's official spokesman also declined to say anything about the substance of the call.More news: Blizzard ban pro Hearthstone player over support of Hong Kong protests
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Johnson's opponents in Britain accused the government of deliberately undermining the Brexit talks.
"This is yet another cynical attempt by Number 10 to sabotage the negotiations", said Keir Starmer, Brexit spokesman for the Labour Party, adding that the British parliament needed to unite to stop him.
Still, Mr Johnson's proposal remains better than no deal at all.
Securing a deal is the only obvious way to obey the law and see through Brexit at the end of the month.
With hopes of a Brexit deal now miniscule, Mr Varadkar said he was working hard to get the process back on track.
However, Norbert Roettgen, a senior Merkel ally, said there was no new German position on Brexit. "It lies on the shoulders of the Conservatives".
The proposals have been broadly rejected by senior European Union figures, with Brussels declining to enter new formal negotiations.
Any agreement must avoid putting "border infrastructure near the border on the island of Ireland again", Coveney told reporters in Brussels late yesterday.
The text also suggests that the government will make it clear that any further extension will not be the government's policy and that Prime Minister Johnson will fight a potential election arguing for a no-deal Brexit.
The proposal has been roundly rejected by the Irish government, however, with the deputy prime minister saying last week that the country "could not possibly" support them.
French President Emmanuel Macron said he's set a deadline of the end of the week for a decision on whether a deal can be done or not ahead of the crunch October summit.