Considering the turmoil surrounding the possible default of Greece and its ejection from the single currency, last week the dollar should have had a rather more successful week than it did. 

In fact, although it avoided coming last among the major currencies the dollar put in a really quite dismal performance. It lost a cent and a quarter to the euro and three and three quarter cents to sterling.

There was no single point of failure. It just felt as though investors had lost their excitement about the prospect of higher US rates. They know the Federal Reserve is still likely to be the first major central bank to take interest rates higher and they think the initial move may come in September but the enthusiasm has worn off. If things go horribly wrong at today’s EU summit meeting investors could rediscover their appetite for the dollar but, for the moment, they prefer the pound.