EUR
The euro kept an uncharacteristically low profile over the Easter weekend.
With the exception of an uptick in German inflation to a provisional 0.3 per cent there were no important euro zone economic data to shape its fortunes.
The only European Central Bank overseer not to have taken the week off was Executive Board member Benoît Cœuré, who told an interviewer that the bank "will not take rates into absurdly negative territory".
Over the nine days the euro moved a dozen or so ticks higher against sterling. It picked up two cents against the US dollar, which became the week's poorest performer after the Federal Reserve chairperson poured cold water on expectations of higher interest rates.
For the year to date the euro's performance is average, strengthening by 7% against sterling and by 4 per cent against the US dollar. Sterling's performance over the quarter was wretched: it lost ground across the board.
The British pound has continued its downward path against a resurgent euro. Sterling/Euro is currently trading at a 17 month low. The continued uncertainty around Brexit and the expected UK interest rate hike which didn’t materialise in Q1 are factors which are fuelling this. Moneycorp are also testing technical levels which are likely to lead to a break out in the rates.
This is crucial if you are exporting and being paid in Euros as it is the best it’s been in nearly a year and a half.
USD
Blame for the dollar's poignant hero-to-zero performance can be laid squarely at the door of the Federal Reserve.
During the week before Easter regional Fed presidents lined up to reassure investors that it was still game-on for higher interest rates this year, maybe as soon as this month, encouraging them to make the dollar was the top-performing major currency.
In the week just ended the Fed chairperson's talk of uncertainty and caution was totally at odds with her hawkish minions, leading investors to think that only one rate increase was on the cards for 2016 and that even that might not materialise. Investors therefore sent the dollar to the back of the field.
Over the nine days it weakened by two and a quarter cents against sterling and a proportionally-similar two cents against the euro.
In the year to date it has gained five cents from sterling and lost four and a half to the euro.