On Monday German factory orders were less weak than expected. On Tuesday German industrial production beat expectations and the revision to fourth quarter €Z growth left it unchanged at 0.3%. None of that mattered to investors: all they cared about was Thursday's European Central Bank policy announcement. On the day, the scale of the ECB's measures did not disappoint: it cut the deposit rate to -0.4% and the refinancing rate to 0% as well as offering to pay commercial banks up to 0.4% if they borrowed money to lend on to customers.

But the ECB also said further rate cuts, while possible, were unlikely. The euro reacted positively to that, as it did to the ECB's failure to mention any overvaluation of the euro. As a result the euro was the week's strongest-performing major currency, adding two and a quarter US cents and strengthening by a cent and a half against sterling.