The GBP/USD currency pair, which expresses the value of the British pound sterling in terms of the U.S. dollar, seems to be struggling to maintain "risk-on" characteristics in recent times. When a particular currency rallies as risk sentiment improves, we might describe it as a "risk-on" currency, the opposite (selling off as risk sentiment weakens) being a "risk-off" currency.
From the start of the year, through the crash that we saw in global equities during February and March 2020, we saw this correlation in action. The chart below illustrates this; using daily candlesticks, it presents