U.K. Halifax Prices Provide Positive Stimulus Ahead of European Open

July UK Halifax house price index rose 1.1% m / m, in line with the national reading for the same month (which was 1.3%) and the 3m / rate and now the 12.1%. This is the third monthly increase in the index this year and continues to -0.5% m / m 3m and -15.0% y / y in June. Halifax data therefore serve to highlight that the housing market may be stabilizing now, despite the low bid is the price comparison distort trade.

USD and the JPY is likely to maintain its inverse correlation with stock market performance and the associated ebb and flow of risk appetite. We currently have over ebb the flow of the securities markets as a pause after recent impressive gains, fueled by a set Q2 better than expected corporate earnings season and the promotion of global economic data. Concern about a correction in the Chinese market came back today, with bank stocks amid pressure so that Beijing could tighten capital requirements, while the potential to keep rising corporate earnings announcements and guidance being reduced simply by the fact that most companies have reported. Thus the tone for the morning European trade is likely to be conducive to the USD and the JPY and more negative for beta-type coins. There is some potential for a sharp recovery in the U.S. and the currencies of Japan, given the magnitude of net short positions held by the market, though we may have some type of catalyst (ie, negative news event data) to trigger a brief crisis coverage. A schedule of data availability hangs today.