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Prime Minister Boris Johnson on Sunday spoke to the German Chancellor Angela Merkel and said that the UK is prepared to walk away on Australian-style terms if no Brexit deal can be reached.

The Prime Minister held similar discussions with French President Emmanuel Macron.

The telephone calls came ahead of UK and EU negotiators resuming negotiations.

There are only some days left to go for an agreement on a future trade settlement can be struck between Britain and Brussels if there is going to be tine for ratification before the end of the year. 

Market implications

Technically, the pound is bid and through important resistance structure, more here.

However, Brexit is a considerable risk for committed bulls positioned for further gains. 

The pound is vulnerable to the sentiment of a hard Brexit outcome while the US dollar is an otherwise favourable safe haven option at times of great uncertainty.