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Conservative politician and the Cabinet Office Minister, who was tasked with overseeing no-deal Brexit planning by British Prime Minister Boris Johnson earlier this week, Michael Gove said that the government was now operating on the assumption that the EU would not offer them a fresh agreement.      

Writing in The Sunday Times, “No deal is now a very real prospect,” Gove said. “Boris Johnson has set up a war cabinet  to deliver Brexit by any means necessary  by October 31.”

Meanwhile, British finance minister Sajid Javid announced that they will be ramping up no deal Brexit preparations and that they will offer a spending package worth £1 billion.  “Yes, we want to leave with a good deal – one that abolishes the undemocratic backstop,” Javid wrote in The Sunday Telegraph.  “That would be better for the UK, and better for the EU, and work is already underway to achieve this.”

The GBP/USD pair, which slumped to its lowest level since April 2017 at 1.2375 last Friday and erased more than 100 pips for the week, could  start the week with a bearish gap following these developments.