After the initial jump over deal announcement last week, Pound has dropped sharply against all of its major trading counterparts as well as emerging market currencies. Since Friday, Pound has dropped close to 3% against Dollar as of today and BOE Governor Mark Carney has warned while testifying before treasury committee that traders are betting for further decline, well ahead of actual referendum.

Speaking before the committee, Governor Carney suggested that the central bank is not working to predict the outcome of the vote or impact if Britons vote to leave but watching over sterling volatility and its implications over UK economy. Out of concern investors and traders are buying protection against sterling volatility and more so to the downside. He added, if concern over Brexit impacting economy that would get revealed if the Bank's survey across the country and also working on contingency plans.

Bank of England's (BOE) new policy member Gertjan Vlieghe, sitting by Mr. Carney's side commented, Pound's drop may not be beneficial to economy, if it's in context to referendum.

Mr. Carney, tried to keep a neutral ground over referendum saying that, while UK benefited since it joined the bloc four decades ago, but has been subjected to economic shocks since the crisis.

Pound is currently trading at 1.393 against Dollar, down -0.55% so far today.