Pound now 3% down this month; falling for three consecutive weeks

Sterling languished just off four-month lows, with the outcome of the European election in the UK seen possibly emboldening proponents of a no-deal Brexit as the battle to succeed Prime Minister Theresa May got under way.

The prospect of a no-deal Brexit, which most economists say would severely damage the British economy, re-emerged as a key risk for sterling after Ms May said last week she would step down as leader of the Conservative Party on June 7.