UK Prime Minister Boris Johnson said the country is now preparing to leave the European Union without a free trade deal in place. Johnson blamed the bloc for not giving good enough terms and said he would seek a no-deal Brexit unless there is a "fundamental change of approach" from the EU causing the British pound to fall.
Only last month, Johnson set a self-imposed deadline for the 15 October for negotiators to come to an agreement or end the talks. When asked to clarify if he was ending negotiations, Johnson said: "We're saying to them: come to us."
The Prime Minister also pointed out that unless there is a change in approach from the EU, they will be going for the Australia solution which some analysts say could result in a near-term shock of around 1.5% of GDP which is around £300 billion to the UK economy and worse if the pound falls.
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Just yesterday, Downing Street was surprised when France's President Emmanuel Macron said that it was the UK's decision to leave the EU and it is up to them to accept the terms with divergences on fisheries and state aid the main issue. This was seen as a challenge to the British Prime Minister's continued threats to walk out on the talks.
However, shortly after Jonshon's televised statement, European Commission, President Ursula von der Leyen tweeted that negotiators from the bloc will still travel to London next week to 'intensify' their discussions. The Brexit saga continues.
You can learn more in the 'Investing in the UK Stock Market After Brexit' article.
How to trade EURGBP with Admiral Markets UK Ltd
If you are feeling bullish or bearish on the price of EURGBP you can speculate on its price direction using CFDs. To get started, follow these five simple steps:
- Log in to your existing Admiral Markets trading account, or open a live or demo trading account in just a few minutes.
- Click Trade on your chosen account which will direct you to the Admiral Markets MetaTrader Web Platform.
- Type in EURGBP, or another instrument, at the bottom of the Market Watch search box and then drag the symbol onto the chart.
- Use the one-click trading feature on the chart or right-click on select Trading -> New Order.
- Choose your entry, stop loss and target levels and position size (volume) and then confirm the trade.
Source: Admiral Markets MetaTrader 5 Web, EURGBP, Monthly - Data range: Oct 1, 2006, to Oct 16, 2020, performed on Oct 16, 2020, at 12:09 pm BST. Please note: Past performance is not a reliable indicator of future results.
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