The problems in the US housing market are worsening and anyone who is long stocks, carry trades or the US dollar is feeling the pain.

Economic expansion in the US is expected to have re-accelerated in the second quarter at an annualized rate of 3.2 percent – a substantial jump from the tepid 0.7 percent growth experienced in the first quarter.

The Chinese yuan appreciated against the euro and British pound in the overnight, falling slightly against the US dollar to 7.5680, as credit news helped to buoy the underlying currency.

The Japanese yen stole broader market headlines on the day, as a pronounced jump in risk aversion led it significantly higher against all major world currencies. The US dollar initially saw a bid on sharp European currency sell-offs, but a continued stock market rout pushed the dollar lower through time of writing.

Currency technical analyst Jamie Saettele analyzes the British pound against the Japanese yen, Swiss franc, and Australian dollar.

Looking at the hourly, a drop under 1.3696 would complete a 5 wave decline from 1.3852.

An uneventful night in FX as most majors consolidated their losses against the greenback, trading in tight ranges through Asian and early European trade.

Price Headley looks at system weaknesses and trade-offs that have to be made.

Professional system trader Art Collins shares his daily biases in the index, bonds and currency futures markets for July 26.

Over the past month, the euro rose to a record high against the dollar while the Japanese yen slumped to a four year low. The moves in both of these currencies have captured the world’s attention.