A week of changing fortunes eventually left both the euro and the pound lower against the US dollar.  The euro came out of it less well than the pound, losing a quarter of a cent to sterling and three quarters of a US cent.  For the most part it was a matter of dollar strength, not euro weakness , that fed the dollar's rally.  But the economic data were of no help to the euro: the services sector purchasing managers' index, retail sales and investor confidence were the only salient Euroland ecostats and they were all lower on the month and softer than expected.

Sterling's week began well enough.  It took joint first place among the majors while London enjoyed its bank holiday.  But it came unglued on Thursday when the Bank of England governor made it abundantly clear that he is in no hurry to raise interest rates.