Taxes and the leadership of the Federal Reserve were the hot topics for the dollar.  The Fed question was resolved, to investors' general approval, when Donald Trump nominated the serving governor Jay Powell as chairman.  He is seen as an agent of continuity, not of change.  The president's tax cuts and reforms are proceeding through Congress as smoothly as he might like but at least they do seem to be making forward progress.  The dollar did not have a brilliant week but it only lost a couple of dozen ticks to the euro.

Sterling suffered a shock defeat on Thursday after the Bank of England delivered its widely-touted rate increase, lifting Bank Rate back up to 0.5%.   The bank went out of its way to stress that investors should not expect any further rate hikes for a jolly long time.  Sterling lost a swift two euro cents, leaving it four fifths of a cent behind on the week.