A rough week for sterling saw it lose three quarters of a US cent and left it in last place among the major currencies with an average loss of -1.5%. Negative sentiment accounted for most of the pound's decline: Investors were not impressed by the prime minister's apparent climb-down on social care and they were unnerved by talk of "no deal" on Brexit. The UK economic data did not help either, especially the downward revision of first quarter growth from 0.3% to 0.2%.

With US economic data in relatively short supply and the president out of the country investors focused on the Federal Reserve and the future course of interest rates. The Philadelphia Fed president said he was looking for two more rate hikes before Christmas but the minutes of the last FOMC policy meeting suggested that not all of his colleagues agree.