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The EU is expected to offer the UK a Canada-style free-trade deal, British Foreign Minister Dominic Raab told Sky News on Sunday and added that there will be no customs checks on goods if the EU sticks to its commitments.

“The UK    will have a high alignment with the EU but will cooperate as part of a future relationship,” Raab further noted. “Britain will hold the EU  to account on its undertakings.”

Market implications

These comments are unlikely to receive a significant reaction from the markets at the start of the week. The Bank of England’s surprisingly hawkish policy stance last week allowed the British pound to outperform its major rivals and the GBP/USD pair gained more than 1% to register its highest weekly close since early December at 1.3205.