STERLING has come under pressure following comments by Donald Trump that a post-Brexit trade deal between Britain and the US could be dead.

The outspoken US president, on an official visit to the UK, warned Theresa May that her Brexit plan could "kill" any UK-US trade deal because Britain would remain so closely aligned to the European Union.

READ MORE: Trump accused of being 'determined to insult' PM on UK visit

His comments sparked a sterling sell off, with the pound shedding 0.6% against the dollar to trade at 1.31.

Versus the euro, sterling was down 0.2% at 1.12.

READ MORE: Trump criticises May before landing in UK, saying ‘Brexit is Brexit’

Connor Campbell, analyst at SpreadEx, said: "Trump claimed that Theresa May's current Brexit plan 'will probably kill' any potential US trade deal, a comment that not only undermines the Prime Minister at the end of an already challenging week, but one that understandably sent sterling sharply lower."

In further embarrassment to May, Trump claimed that Boris Johnson has "got what it takes" to be prime minister.

The highly-controversial remarks piles further pressure on the embattled PM as she desperately tries to unite her divided Tory party over Brexit.

"Let's not forget that the hope of a quick trade deal with the US was a significant factor in Theresa May's decision to invite Trump in the first place. Another embarrassment that May could have done without," Jasper Lawler, head of research at London Capital Group, said.