Governor of the Bank of England Mark Carney on Sunday said that failure to secure a trade deal with the EU following Brexit will damage UK economic growth in the short term.
When questioned about the Brexit deal in an interview with a top British TV broadcaster Carney said "In the short term, without question, if we have materially less access (to the EU) than we have now, this economy is going to need to reorient and during that period of time it will weigh on growth."
Carney also added that the lack of progress in the ongoing negotiations is hindering the growth of British business investment which would otherwise flourish given the strength of the world economy and other factors.
Apart from the Bank of England's decision to raise interest rates for the first time since July 2007, last Thursday also saw a cabinet reshuffle amongst top members of UK parliament with British Prime Minister Theresa May appointing North Yorkshire MP Julian Smith as her new chief whip.
Smith who initially voted to remain in the EU, replaces Gavin Williamson who has since been promoted to defence secretary although he has never held ministerial office.
The dollar recovered from a disappointing jobs report on Friday following the release of service and manufacturing data.
A report published by the bureau of labour statistics showed the change in the number of people employed during the previous month excluding the farming industry rose by less than expected to 261,000 in October from 18,000 a month earlier.
Analysts had originally expected the economy to shrug off the impacts of hurricanes Harvey and Irma and had forecast the figure to hit 310,000.
However losses in the currency were offset later in the session after the non-manufacturing PMI increased to 60.1 from September’s reading of 59.8 beating economists’ expectations of a decrease to 59.5.