Dove's cry

Lira pounded

A couple of hours before New York traders shut up shop news of the military coup in Turkey forced them to mark down the lira. In less than 60 minutes it fell -5% against the dollar before losing momentum as markets closed for the weekend. By the time the Far East got going this morning it had become clear that President Recep Erdoğan had retained control of the country and the central bank had promised "unlimited liquidity" to commercial banks. The lira opened off its lows, allegedly without the assistance of central bank intervention.

It was not only the lira that felt the effect of the coup attempt. The South African rand, the Mexican peso and the Malaysian ringgit also took a hit on Friday evening. Those three have completely recovered while the lira has made back most of its losses.

Pound downed

After a great day on Thursday, following the Bank of England's failure to deliver the expected rate cut, the pound had a rough day on Friday. Profit-taking was part of the problem but sterling's decline was mainly the result of a speech by Bank of England's chief economist Andrew Haldane.

In it Mr Haldane said "a material easing of monetary policy is likely to be needed" and that it should be "delivered promptly as well as muscularly. By promptly I mean next month." Curiously, the bank left it until Friday to publish this "Text based on a speech in Port Talbot, Wales, 30 June 2016". Even stranger, Mr Haldane was not the MPC member who voted for a rate cut at last Thursday's meeting: that was Gertjan Vliegh.

Anyway, if Mr Haldane's intention was to ease policy through a lower pound he was successful Compared with Friday morning sterling is lower across the board, down by an average of -0.9%. The pound's losses include one euro cent, one and a third Swiss cents and nearly two US cents. The safe-haven yen took the top slot, courtesy of the Ankara coup, and the US dollar was close behind, helped by Friday's strong US retail sales data.

Weale out

There is something on the agenda for sterling every day this week. Today's first item came at midnight with a -0.9% monthly fall in Rightmove's house price index. The next and more important one will be a speech this morning by MPC member Martin Weale.

Mr Weale is the longest-serving member of the MPC, having attended 72 meetings. The Bank Rate was already down at 0.5% when he started and he has voted 12 times for an increase.

It is conceivable, then, that Mr Weale's speech might provide a hawkish counterpoint to Mr Haldane's dovishness. If not, look out.