The statement follows months of rumours of a possible split in Mrs May’s cabinet, with Mr Hammond and Dr Fox seen to be on opposing sides of the Brexit debate.
As it stands, the Chancellor appears to be seeking a softer approach to Brexit, while the Trade Secretary is pushing for a hard exit from the EU.
The article stressed, however, that while a transitional deal would be sought, it would not stop the UK from making a clean break from the EU.
It was stated: “We are both clear that during this period the UK will be outside the single market and outside the customs union and will be a ‘third-country’ not party to EU treaties.”
Meanwhile, the US dollar remains under pressure at the start of this week’s session following some weak inflation figures on Friday.
According to the US Labour Department, US inflation rose from 1.6 per cent to 1.7 per cent in July, however this was short of market estimates of 1.8 per cent and well below the Federal Reserve’s target range of 2.0 per cent.
Investors therefore saw this as yet another sign that the Federal Reserve’s plans to hikes rates for a third time later this year may be hampered, with market odds of a final adjustment taking place by the end of 2017 falling below 40%.
Looking ahead, the GBP/USD exchange rate is likely to trend higher early on Tuesday as the UK releases its latest CPI figures, with economists forecasting that inflation will have climbed from 2.6 per cent to 2.7 per cent in July, possibly putting more pressure on the Bank of England to raise interest rates in the near future.
However, sterling’s gains may be capped by ongoing concerns that rocketing inflation and weak wage growth is likely to drag on the UK economy as consumer spending plummets.
Meanwhile, the US dollar may rally tomorrow afternoon as analysts predict that US retail sales will have rebounded from -0.2 per cent to 0.4 per cent in July.