Sterling and the US dollar were the most conspicuous losers on the currency markets in the last week.
Both continued to suffer the fallout from multi-year highs against the euro two weeks ago, and neither was able to offer investors a reason why their correction should not go further.
The UK coalition government's final budget was so clearly focused on gaining support in May's general election that investors were reminded just how uncertain is the outcome of that vote. They are not sure which they fear most; tax-and-spend from a Labour coalition or a leave-the-EU referendum from a Conservative one.
In the States the Federal Reserve made the semantic change to monetary policy that everyone had been expecting. It will no longer be 'patient' in taking interest rates higher. But the Fed chairperson was at pains to point out that this does not mean it will be impatient. Hopes of a rate increase in June faded and, with them, the dollar.
The euro did nothing particularly well but the newly-perceived problems of its two main rivals, the pound and the US dollar, allowed it to make the most of its rebound. Investors still believe the spat between Athens and Berlin will be resolved at the last moment, as these things always are. Yet the possibility of Greece leaving the single currency cannot be ruled out. It might not be the organised Grexit originally feared but there could be a Graccident if the leaders' stubbornness clouds their judgment.
Tuesday is arguably the most important day this week for economic data. Consumer price index readings from the UK and the US are likely to be as close to zero as makes no difference at +0.1 per cent and -0.1 per cent. In theory, those numbers are priced into sterling and the dollar but investors can be a flighty bunch. There could be a reaction.
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