The pound fell against its major trading partners in the European session on Friday, as concerns over retail trading frenzy in short positions dampened risk sentiment.

Markets digest the latest Reddit's retail-trade frenzy, which triggered outsized moves in GameStop, AMC Entertainment and other previously beaten-down stocks.

The surge in speculative trading has prompted several e-brokers to take steps to restrict the buying of shares on Thursday.

Robinhood and other online broker platforms eased restrictions on select share trading, re-igniting volatility of shares.

Continued concerns over tight liquidity in China, rising Covid-19 cases and the delays to vaccine rollouts also rattled markets.

The pound declined to 0.8871 against the euro, after rising to a 2-day high of 0.8825 at 9:45 pm ET. If the pound falls further, it is likely to test support around the 0.90 region.

Reversing from a high of 1.3730 seen at 5:15 pm ET, the pound edged down to 1.3657 against the greenback. The pound is poised to challenge support around the 1.34 mark.

After a a 2-day gain to 1.2202 at 9:45 pm ET, the pound turned lower against the franc and was worth 1.2149. The currency may locate support around the 1.19 mark.

In contrast, the pound jumped to 143.74 against the yen, its highest since February 2020. The pound is seen finding resistance around the 145.00 mark.

Looking ahead, Canada GDP data for November and industrial product price index for December, as well as University of Michigan's final consumer sentiment index for January and U.S. personal income and spending data and pending home sales for December are due out in the New York session.