British Pound Loses Ground Versus Dollar Following BOE Deputy’s Warning

Sterling tumbled versus its American counterpart on Tuesday after Bank of England Deputy Governor Ben Broadbent warned about a reduction in trade for both the British economy and the EU’s in the aftermath of the U.K.’s leaving.

The pair GBPUSD dropped more than 0.3 percent to trade around 1.284 in early North American trading session on Tuesday. During a speech to the Scottish Council for Development and Industry in Aberdeen, BOE Deputy Broadbent said that Britain’s economy would be dragged down by Brexit which looks set to impact on existing trade links between the country and the European Union.

Meanwhile, the dollar held on gains versus its peers ahead of Federal Reserve Chair Janet Yellen’s testimonies. Yellen is scheduled to deliver her semi-annual monetary policy testimony before the Senate Banking Committee on Wednesday and in front the House Financial Services Committee on Thursday. Investors will looking for Yellen’s comments which may provide fresh cues on the future path of interest rates.

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