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.
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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.