To nobody's great surprise Italians rejected Prime Minister Matteo Renzi's referendum proposals for constitutional changes last Sunday. Investors' initial reaction was to mark down the Euro on Monday morning. Then, within an hour and a half, they changed their minds and the Euro forged ahead even though Sig. Renzi's resignation increases the political uncertainty in Italy.

The other big event in Euroland was the European Central Bank's announcement on Thursday. The ECB said it would extend for another nine months the quantitative easing programme that was scheduled to expire in March. Although asset purchases beyond that date will be at a pace of €60bn rather than €80bn a month investors saw the news as negative for the Euro. Overall the single currency weakened by half a cent against Sterling and lost two thirds of a US cent. It shared last place for the week with its forever friend the Swiss Franc.