The only story in town this week was about sterling. Confirmation last weekend that the prime minister had done a deal with Brussels, and that the referendum would take place on 23 June, forced investors to consider that Britain really might leave the European Union. The uncertainty was so unnerving that they hit sterling hard when the Far East opened for business on Monday morning and they have been hitting it ever since. The pound is down by an average of 2.5% on the week against the other major currencies

Investors reckon Brexit would be bad for the UK and they worry that it would be unhelpful to the EU and the €Z too. The declining pound sucked the euro down behind it, making it the week's second-worst-performing currency. Over the six days the euro strengthened by two and half cents against sterling while losing one US cent.