Search ForexCrunch

Early Wednesday morning in Asia, Reuters came out with extracts of the closing speech of the United Kingdom’s (UK) Prime Minister (PM) Boris Johnson to his governing Conservatives’ annual conference.

The news report firstly claims that the Tory leader will offer his Brexit proposal to the EU on Wednesday and make clear that if Brussels does not engage with the proposal, Britain will not negotiate further and will leave on Oct. 31.

Additionally, The UK Telegraph reveals some of the secrets of the deal that says Boris Johnson will on Wednesday unveil a radical new ‘two borders for four years’ Brexit plan which will leave Northern Ireland in a special relationship with Europe until 2025. It was also mentioned that the plan, which was briefed to major EU capitals on Tuesday, will accept the need for both a regulatory border between the UK and Northern Ireland in the Irish Sea for four years – and customs checks between Ulster and the Republic of Ireland.  

Furthermore, the news story states that the UK’s proposed replacement for the existing Irish backstop is expected to face fierce opposition from EU leaders who will be asked to grant the UK sweeping exemptions from EU customs rules to facilitate a Northern Irish customs border.

Key quotes (Source: Reuters)

“My friends, I am afraid that after three-and-a-half years people are beginning to feel that they are being taken for fools. They are beginning to suspect that there are forces in this country that simply don’t want Brexit delivered at all.”

“Let’s get Brexit done on October 31 so in 2020 our country can move on.”

“The government is either going to be negotiating a new deal or working on no-deal “” nobody will work on delay.”

FX implications

Considering the lack of market liquidity amid the early Asian session, the GBP/USD pair showed little response to the news. However, the same could weigh on the Cable due to its hardline nature increasing the scope of no-deal Brexit.