British Prime Minister Boris Johnson said on Friday that now it’s time for UK companies to prepare for an Australia-style deal with the European Union.
As an initial reaction, the pair GBP / USD lost around 90 pips, going from trading above 1.2950 to falling towards 1.2860 in a matter of minutes. At the time of writing, the pair is recovering just above the 1.2910 level.
“Since the EU has seriously refused to negotiate, I’ve come to the conclusion that we should prepare for an Australian-style deal” Prime Minister Johnson has noted.” A Canada-style deal won’t work for our partners, judging by the EU summit. We wanted nothing more than a Canadian-style deal. ”
Johnson has further added that the EU has abandoned the idea of a free trade agreement and said they will go for the no-deal Brexit option if they don’t make a fundamental change in your approach.
More: The pound falls in the market: Johnson says they should prepare for a no-deal exit from the EU
Credits: Forex Street