At least against the euro the US dollar started well and finished badly.  Last Friday's employment report was strong, with nonfarm payrolls rising by 255k in July.  It was not quite up to the standard of June's 292k increase but investors thought at the time that it would put a 2016 interest rate increase back on the table.  It still might but, with no follow-through from the US ecostats, that optimism has faded.  The suspicion now is that the Federal Reserve will make no decision until after the elections in November.

Sterling had another rough week after MPC member Ian McCafferty wrote a piece for The Times in which he reinforced the Bank of England governor's threat of lower interest rates and increased quantitative easing before year-end.  The pound was the weakest among the major currencies, losing more than one and a half US cents.  Against the euro the dollar was exactly unchanged at $1.11.42.