Effects of coupling between phonon distortions and stripe-like spin waves inthe CuO plane of HgBa$_2$CuO$_4$ are studied by band calculations. Localexchange enhancements depend sensitively on the local structure around Cusites. Interactions where spin waves have twice as long wave length as phononwaves can lead to a 'dip' in the density of states (DOS) below the Fermienergy, $E_F$. This type of interaction is compatible with several seeminglycontradictory observations among high-$T_C$ cuprates, like the isotope effect,anti-ferromagnetic fluctuations, stripes and pseudogaps. It can also accountfor a large $T_C$.