The euro might not have been the worst performer among the major currencies over the last week but it only beat the last-placed Japanese yen by a neck. As investors regained some of their confidence they bought equities and "risky" commodity-related currencies while reducing their holdings of "safe" euros and yen. The net effect on the euro was a loss of one US cent and a decline of three cents against sterling.

Against the pound it was pretty much a one-way downward street for the euro: against the US dollar its performance was more nuanced, falling early in the week before regaining some of the lost ground on Thursday. The economic data from Euroland were not particularly worse than its peers but they tended to reinforce expectations that when the European Central Bank Governing Council meets next Thursday it will cut rates and, probably, announce more quantitative easing.