During most of the week the Kiwi did fairly well, gaining nearly five and a half cents against sterling. It was helped on its way by a couple of decent NZ economic statistics, including a rebound in building permit issuance, an improvement in business confidence and a 3.6% recovery in milk prices. For its part, sterling was hurt by disappointments in UK mortgage approvals and a slowdown in the pace of growth in the manufacturing sector. 

It all fell apart on Thursday though, when the European Central Bank failed to deliver the aggressive money-printing that investors had expected. The absence of that cheap money led investors to buy the euro and to sell the commodity-oriented currencies that would have been expected to benefit from monetary easing. Thursday's dip ate into the Kiwi's earlier gains, leaving ahead on the week by one US cent and just three and a half cents higher against the pound.