International Trading



N. Americans have started their day by selling equities. The first data event of the day is the release of the S&P Case-Shiller Home Prices for June, which were 4.2% y/y down from the 4.61%y/y rate in May and exactly where 4Cast analysts had projected, but above the market's expected rate of 3.6% y/y. Softer equities and softer house prices are putting pressure on USD, while giving JPY a boost. EUR's ability to outperform USD while equities advance continues to confound the market. But, the simple explanation is that the month end is forcing some short covering, with questions of value and/or sovereign involvement not relevant at the current mid-range levels. M.B.