Investing.com - The pound fell to a four day low on Tuesday as comments on the consequences of a disorderly Brexit prompted traders to sell.
Bank of England Governor Mark Carney warned that economic panic could ensue if the UK exited from the European Union in a disorderly fashion. The comments were made following the BOE annual bank stress test.
GBP/USD was down 0.59%, trading at 1.3237 as of 11:30 AM ET (4:30 PM GMT).
The US dollar gained traction against other major currencies as investors listened in to Fed Governor Jerome Powell’s confirmation hearing as head of the central bank for clues as to how he will run the Fed. The U.S. dollar index, which measures the greenback against a basket of six major currencies, rose 0.32% to 93.15.
Investors have also turned their attention to the tax-reform bill, with Trump expected to discuss the bill with Senate Republicans at their weekly luncheon. The Senate is expected to vote on the highly-anticipated bill on Thursday. Republicans are rushing to pass a tax bill before the end of the year, which could include cutting corporate taxes to 20% from 35%.
The dollar was also bolstered by signs of a strengthening economy. Data from the Conference Board on Tuesday showed consumer confidence hit a 17-year high in November. The greenback held against the yen, with USD/JPY increasing 0.08% to 111.33.