The initial effect of Donald Trump's election to the White House seems to have run its course. While investors still expect his policies for tax cuts and infrastructure spending to be positive for the dollar in the longer run they were not sufficiently enthusiastic to continue buying the dollar a month after the vote. Despite the looming uncertainty of this weekend's referendum in Italy and presidential vote in Austria they still preferred the euro to the dollar: it strengthened by one US cent on the week.

Sterling did better than either of them, strengthening by one and three quarter US cents and touching a four-week high. Although the spectre of Brexit still stalks the pound investors are no longer so frightened of Britain falling off an economic cliff edge when the spilt finally happens. The Bank of England governor and the minister of Brexit both floated ideas to avoid that risk.