The pound fell today after comments by UK finance minister Sajid Javid stoked fears about weak ties between Britain and the European Union following the country's departure from the bloc.

In an interview with the Financial Times on Saturday, Javid said Britain would not commit to sticking to EU rules in post-Brexit trade talks.

That is a threat to businesses that want to ease cross-border checks with the EU once the transition period following Britain's departure on January 31st terminates at the end of the year.

A spokesman for Prime Minister Boris Johnson said today that although there will be equivalence of rules at first after Brexit, Britain does not want alignment and would pursue a free trade agreement instead.

The pound was last down 0.1% against the US dollar. It was flat against the euro at 85.25 pence.

"It's about the UK diverging from Europe, and that would necessarily result in limiting access to European markets," said RBC Capital Markets chief currency strategist Adam Cole.

"Markets are taking that negatively."

The focus this week will be on Friday's PMI numbers, which analysts say are the remaining key data releases to gauge whether the Bank of England's will cut interest rates at its January 30th meeting.

"There is not a huge amount of downside to go for," RBC's Cole said of the data, given how high rate-cut expectations already are. 

"A bigger market reaction would be if the PMIs camein better than expected."

Money markets currently price around a 65% chance of a quarter-point rate cut by the Bank of England to its 0.75% policy rate, slightly lower than around 70% at the start of London trading today.