British Prime Minister Boris Johnson has come out saying that businesses in the UK need to prepare themselves for an Australian type deal with the European Union. But what does this mean an “Australian Style” deal? Well firstly it must be stated that the PM was pushing for a Canada style deal whereby they agree to a free-trade agreement with the European Union. However the EU was having none of it. So just like his push for the Australian point system to try and take back control of the borders, Boris would like to revisit the Australian style of no trade tolerance they have with the EU. A decades old headbutting between the two nations. But Boris believes this to be better than no deal at all.
The market didn’t take well to the PM’s comments as we saw the GBP/USD drop more than 60 pips whilst the EUR/GBP shot up to 0.9093, an increase of 0.35%.
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