Hi Thanks for asking. Having diabetes does not interfere in any way with the home pregnancy test using urine for Hcg levels. There are plenty of reasons for the negative test with the pregnancy and most important of it is the doing the test too early ,this test can remain negative for few days before the HCG levels rises to be tested by the test. Another potentially dangerous condition is ectopic pregnancy , where the levels remain low for weeks and do not rise as expected. My advise will be to redo the test in few days and if still negative go for the pelvic scan and blood Hcg levels. Thanks.