The Aussie was the second best performer among the major currencies, behind the Canadian dollar. Against sterling it strengthened by one cent and it added half a US cent. It got two statistical legs up, the first coming when weak retail sales and slowing inflation in the States cast doubt on the upward course of US interest rates. The second was home-grown, in the form of unexpectedly strong jobs data that showed employment increasing by 42k in May.

Sterling was fortunate not to extend the losses it suffered in the immediate aftermath of the general election. UK industrial and manufacturing were disappointing, as were retail sales. Inflation accelerated to 2.9% (CPI) and 3.7% (RPI), outpacing the 2.1% increase in wages and putting a further squeeze on household spending power. The pound was saved by the three members of the Monetary Policy Committee who unexpectedly voted for higher interest rates. No actual increase is imminent but there won't be any further cuts.