UK Rightmove House Prices (SEP) (23:01 GMT; 19:01 EST)
                         (MoM)          (YoY)
Consensus:         n/a               n/a
Previous:           -1.6%             9.0%

Outlook:  The Rightmove measure of UK house price growth could continue to decline in the month of September following Augustââ,¬â"¢s slip of 1.6%. Although last monthââ,¬â"¢s figure was negative, the annual rate of house price expansion was still 9.0%, which could have been enough to temper demand even more. A reduction in the amount of potential buyers may also be exacerbated by the increase in interest rates in August by the Bank of England to 4.75%, as well as the potential for further hikes later in the year. On the other hand, a tighter labor market which has helped maintain wage growth, could have given purchasers more confidence in affordability, lending upside risk to the house price number.

Previous:  House prices in the UK, as measure by Rightmove, declined 1.6% in August, which was the largest fall in nearly two years. Rightmove reported that the slowdown was partly due to seasonal factors, however, they also highlighted that they believe that prices had peaked for 2006. Adding to the already sky-high prices in the housing market was the BOEââ,¬â"¢s surprise 25 basis point hike on August 3rd to 4.75%. Potential home buyers were subsequently left with not only increased prices, but also rising borrowing costs, and likely kept some of them out of the market altogether.

Canadian International Securities Transactions (JUL) (12:30 GMT; 08:30 EST)
Consensus:           C$1.500B
Previous:               C$0.340B

Outlook:  Net investment in Canadian assets is expected to rebound in July as international investors sought higher and more reliable yields.  All three asset classes measured by the securities transaction read (equities, government debt and company bonds) were likely in demand through the month.  Starting with the most risky, equities, a strong performance by the TSX/S&P Composite index was likely the first attraction for capital influx.  The TSX index advanced to 11,900 after a brief retracement in the middle of the month, to match the highest level seen in two-and-a-half months.  Furthermore, for those seeking the returns on stocks, a strong interest in owning Canadian resource producers was facilitated by record prices in a few key commodities and an intensifying M&A interest, which in itself likely boosted the balance.  Despite the optimism in equities, most of the inflow of international capital probably found its way into corporate and government bonds.  Though the Bank of Canada made it more than clear it wouldnââ,¬â"¢t raise rates again in the near future, the US Fed was saying much of the same.  With spreads fixed between the two, and the US actively engaged in conflicts, verbal or otherwise, in Iraq, Iran and other places in the world; Canada was more secure in its neutrality. One potential problem however could have been fear over fluctuations in exchange rates.  At a 28-year high against the US dollar, if the loonie appreciates dramatically while an investor has money in Canada, their returns would be shaved when they exchange back to their home currency.

Previous:  Canadaââ,¬â"¢s net surplus on securities investment fell to its lowest point this year in June as foreign investors lightened their supplies of Canadaââ,¬â"¢s bonds and Canadians looked to use the favorable exchange rate and higher yields across the boarder to stretch the returns in foreign markets.  According to Statistics Canada, international securities transactions shrank to a net C$343 million from C$5.876 billion in May.  For global investors looking to place their money with less risky, yet high yielding assets, the appeal of Canadian bonds shrank after the BoC decided to halt its string of seven consecutive interest rate hikes.  Perhaps more burdensome for the surplus however was Canadians investment abroad.  With the US not yet revealing its decision to halt rate hikes, the rate differential was pulling more capital south of the border.

US Current Account Balance (QoQ) (2Q) (12:30 GMT; 08:30 EST)
Consensus:          -$213.5B
Previous:              -$208.7B

Outlook: US Current Account deficit is expected to expand to a near record ââ,¬â€œ213.0 Billion for the second quarter of 2006 as widening Trade deficits will likely show further deterioration in US balance sheet position. This week's record trade deficit of ââ,¬â€œ68 Billion showed that US import demand for both energy and non-energy goods and services remains unabated and will continue to contribute to creating a Current Account deficit which is fast approaching one trillion dollar mark on an annual basis.

Previous: The U.S. current-account deficit shrank more than forecast in the first quarter from a record in the previous three months as the trade balance improved and Americans earned more on their overseas investments. The deficit, the broadest measure of trade because it includes transfer payments and investment income, declined to $208.7 billion from a revised $223.1 billion the previous three months, the Commerce Department said today in Washington. The gap narrowed to 6.4 percent of the economy from 7 percent in the fourth quarter.

Richard Lee is a Currency Strategist at FXCM.