The pound drops on the headline
- The latest EU summit suggests Canada-style deal won't work
- EU has refused to negotiate seriously, we should get ready for no-deal in January
- It is clear from EU summit, that we will not be offered same terms as Canada
- I have concluded that we should get ready for Australia-style deal i.e. no-deal
Reuters is reporting with the headlines and this is a bit of a surprise outcome, all things considered. That said, there is still ten more weeks before the actual deadline and Johnson could very well be posturing here to get the EU to move their red lines.
The pound has fallen from 1.2960 to 1.2865 on the headline, but is trading back closer to 1.2890-00 currently after nearing a test of the week's low at 1.2863.
