The G10 currency market is driven solely by political events, one strategist told CNBC Friday.

Dominic Bunning, FX Strategist at HSBC said that whereas a range of events had impacted the performance of G10 currency pairs, now it is only politics.

"In G10, everything is driven by politics. We used to think about economics and cyclical stories and structural stories and balance of payments etc but now all we care about is politics," Bunning said.

He explained that if you have a strong political view then you make trading decisions on the basis of that.

"If you think the euro zone is going to break up then by all means sell the ," Bunning said, while warning that he doesn't have a strong view on euro.

On sterling however, Bunning said the weakness is likely to continue. "We still think there is a strong weakness in sterling even though it is relatively lower because the political outlook in the UK is very challenging."