The euro was stronger on the week against sterling, as was every other major currency. It went up by four fifths of a cent against the pound and was unchanged against the US dollar. There was no unusually good news about the Euroland economy, just as there was nothing especially bad about the UK picture. The main reason for investors' selling was a technical one: a break of the month-long uptrend that had taken the pound from below €1.35 in mid-August to a peak of €1.39 at the beginning of last week.

There are no top-tier euro zone economic data in the coming week's schedule, nor will there be any policy announcement from the European Central Bank. For the sterling/euro exchange rate, potentially the most important event will be the voting split at Thursday's Monetary Policy Committee meeting in Threadneedle Street.