New Zealand Markets close in 5 hrs 38 mins

US President Trump Tells UK PM May to Sue the EU

UK Prime Minister, Theresa May, has revealed on BBC interview that US president Donald Trump advised her to sue the EU. May added: “What the president also said at that press conference was ‘Don’t walk away. Don’t walk away from the negotiations. Then you’re stuck.”‘

President Trump has spent the last days in Europe where he attended a NATO meeting before traveling to the UK. He left Brussels with the commitment of NATO members to meet their agreed 2% spending target. Reports from the meeting suggested that he threatened to pull the US out of NATO if this wasn’t agreed which led to a knee-jerk selloff in markets at around 08:55 GMT yesterday.

He conducted an interview with the Sun newspaper in the UK where he is reported to have said that May’s plan for a softer Brexit “will probably kill” any future trade deal with the US. He said that PM May ignored his advice for a hard Brexit and that Boris Johnson would make a great PM.

GBPUSD has sold off since the comments were reported, falling to a low of 1.31641 but finished the week higher at 1.3236. The Brexit White Paper released on Thursday created little movement in markets. Next week will be important for GBP with economic data being released which will impact the BOE August rate decision, a key driver of direction in the currency.

The American President will travel to Helsinki, Finland to meet the Russian President Vladimir Putin on Monday.

This article was originally posted on FX Empire

More From FXEMPIRE: