According to The Sun's political correspondent, Tom Newton Dunn
The headline crossed Bloomberg a little wrongly as it said "UK seen very worried EU may be close to go for no deal" and that nudged the pound lower as cable falls from 1.3120 levels to 1.3109 currently.
It has to be taken into context as the entirety as May looks to offer a compromise to the EU, although there's still no signs that they will accept an "option" for extending the Brexit transition period. The real issue as mentioned several times today will be whether or not May's Tory party will see eye to eye with her on this proposal.
Judging by the message sent out today to its members, it doesn't appear May is too confident about that hiding behind plenty of caveats on the transition period extension (saying it is only an idea, proposing it as an option, and insisting that there would be no need to take up the option):
