Breaking: UK PM Johnson calls upon business to get ready for Australia deal
|British Prime Minister Boris Johnson said on Friday that it is now the time for the businesses in the UK to get ready for an Australia-type deal with the European Union.
Market reaction
With the initial reaction, the GBP/USD pair lost more than 60 pips in a matter of minutes and was last seen losing 0.26% on the day at 1.2880. Reflecting the broad GBP weakness, the EUR/GBP pair shot higher and is currently gaining 0.35% on the day at 0.9093.
"Given the EU have refused to negotiate seriously, I have concluded we should get ready for an Australia-style deal," PM Johnson noted. "A Canada style deal will not work for our partners, judging by the EU summit. We just wanted nothing more than a Canada-style deal."
Johnson further added that the EU have abandoned the idea of a free trade deal and said that they will go for a no-deal if they don't make a fundamental change to their approach.
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