The Pound is down against most of its peers on a quieter than usual European Friday session, due to the May 1st holiday, which is observed throughout most of the continent. The main driver for sterling’s weakness is the change in market sentiment to a more sombre mood, and this will not support currencies that are more closely linked to risk.
The impact of this change becomes clearer when we compare the performance of the Pound versus a traditional safe haven like the Japanese yen, with sterling down more than 0.5%.
