The latest Market Talks covering FX and Fixed Income. Published exclusively on Dow Jones Newswires throughout the day.
0334 GMT - Malaysia's central bank is likely to maintain a cautious, data-dependent approach, but keep its overnight policy rate unchanged as inflation remains contained, UOB economists Julia Goh and Loke Siew Ting say in a note. Policymakers are expected to remain watchful amid uncertainty over the U.S.-Iran peace process, U.S. trade policy, artificial intelligence-driven market shifts and the prospect of U.S. interest rates staying higher for longer, they say. They expect Malaysia's 2Q GDP to exceed expectations, supported by robust exports, mining output, and domestic demand.(yingxian.wong@wsj.com)
0319 GMT - The Singapore dollar strengthens slightly against its U.S. counterpart in the Asian session amid lower crude oil prices that could lead to cooler inflationary pressures in the region. The greenback has weakened alongside softer oil prices, analysts of CIMB's Treasury and Markets Research say in a research report. Also, "U.S. officials reported that U.S.-Iran technical talks are continuing despite renewed strikes," the analysts add. The U.S. dollar is 0.1% lower at 1.2900 Singapore dollars, LSEG data show. (ronnie.harui@wsj.com)
0312 GMT - Bank Negara Malaysia may keep its policy rate unchanged at 2.75% throughout 2026, CGS International economist Mas Aida Che Mansor says in a note. She sees limited urgency for a policy adjustment in either direction, given stable economic growth and contained inflation. Domestic demand could remain supported by a strong labor market, steady wage growth and government measures, while robust electronics exports and a recovery in other exports should support overall growth, she says. Inflation is expected to stay manageable despite higher commodity prices, as government initiatives help cushion cost pressures, reducing the need for tighter monetary policy, she adds. (yingxian.wong@wsj.com)
0311 GMT - The dollar is expected to trade around 4.05 ringgit to 4.08 ringgit next week, with risks tilted toward ringgit appreciation, Kenanga economists say in a note. Investors will focus on U.S. June inflation data, retail sales and Fed Chair Kevin Warsh's congressional testimony, as well as China's 2Q GDP next week. Softer U.S. inflation is expected to reinforce expectations that the Fed will keep interest rates unchanged, prompting investors to selectively re-enter higher-yielding currencies, they add. Their base case assumes U.S.-Iran tensions will remain contained without causing a sustained hit to energy supply. Kenanga expects the dollar to face resistance at 4.080 ringgit, with support at 4.064 ringgit. The dollar is 0.3% lower at 4.0632 ringgit. (yingxian.wong@wsj.com)
0257 GMT - Bangko Sentral ng Pilipinas is likely to remain hawkish even though inflation eased in June, DBS senior economist Radhika Rao says in a note. Headline inflation cooled to 6.4% last month, from 6.8% in May, remaining well above BSP's 2%-4% target range. Core inflation also accelerated, pointing to persistent underlying price pressures. BSP Gov. Eli Remolona has reiterated in recent weeks that the BSP remains prepared to tighten further, if necessary, she notes. DBS continues to expect BSP's policy rates to remain restrictive through 3Q, and it could hike another 50 bps if core inflation remains sticky.(amanda.lee@wsj.com)
0237 GMT - The yen strengthens against most other G-10 and Asian currencies in early Tokyo trade on prospects of more inflows into Japanese assets. Japanese Finance Minister Katayama said earlier Friday: "We are looking to pursue measures to encourage pension funds, including the GPIF, to make further investments in Japanese financial assets." The dollar falls 0.5% to 161.49 yen, the euro drops 0.3% to 185.03 yen, and the Australian dollar sheds 0.2% to 112.33 yen, LSEG data show.(ronnie.harui@wsj.com)
0224 GMT - Japan's Prime Minister Sanae Takaichi might need to consider more careful, market-conscious communication on highly sensitive issues, says Mizuho Securities economist Yusuke Matsuo. Among the topics are funding for planned consumption-tax cuts on food and her massive investment program, Matsuo says. Japanese government bond yields spiked recently due to concerns that political pressures would delay the Bank of Japan's interest-rate hikes and heighten inflationary risks. Finance Minister Satsuki Katayama on Friday emphasized the central bank's independence, saying specific monetary-policy measures are up to the BOJ to decide. The 10-year JGB yield was last down 10 basis points at 2.775%. (megumi.fujikawa@wsj.com)
0152 GMT - Japan's producer prices are expected to rise by more than 5% year-over-year, with crude oil and petroleum product costs likely to remain high for the time being, says Daiwa Securities economist Yutaro Suzuki. Corporate goods prices rose 7.1% in June from a year earlier, Bank of Japan data showed Friday. "While the recent resurgence of tensions in the Middle East requires vigilance, crude oil prices are expected to gradually decline over the longer term as the situation in the region improves," Suzuki says. "The corporate goods price index is also likely to ease moderately toward the end of the year," he adds. (megumi.fujikawa@wsj.com)
0127 GMT - Indonesian rupiah's balance of risks remain tilted toward further weakness, MUFG Bank's Lloyd Chan says in a research report. "Renewed geopolitical tensions in the Middle East and elevated U.S. yields continue to exert external pressure on the rupiah," the senior currency analyst says. Although high Indonesian government bond yields have helped to lure foreign inflows into debt market, Indonesia continues to face persistent net foreign equity outflows, Chan says. "Adding to concerns, S&P Dow Jones Indices warned that Indonesia could lose its emerging market status if concerns over its equity market persist," the analyst adds. The dollar closed 0.4% higher at 18,070 rupiah on Thursday, LSEG data show. (ronnie.harui@wsj.com)
0109 GMT - Gold's rally is likely limited by some headwinds, HSBC Global Investment Research's James Steel says in a research report. Fed rate-increase prospects still could limit any rallies, though these expectations have been mostly factored in, the chief precious metals analyst says. Also, a strong U.S. dollar could "put up considerable headwinds to rallies," Steel says. However, "heavy liquidation may partially reverse as structural factors aiding gold pre-[Mideast] conflict resume and its safe haven and portfolio diversification properties attract buyers," the analyst adds. HSBC retains a "positive posture" on gold, but lowers its average gold-price forecasts for 2026 to $4,560 per ounce from $4,864 an ounce, and for 2027 to $4,925 per ounce from $5,000 an ounce. Spot gold edges 0.1% lower to $4,120.04 per ounce. (ronnie.harui@wsj.com)
0054 GMT - Bitcoin falls 0.4% in early Asian trade to $63,028.72. Macro conditions for the cryptocurrency are improving as energy supplies from the Gulf slowly recover, though uncertainty remains elevated given the fragile U.S.-Iran ceasefire, says Can-Luca Koymen of Sygnum Bank. Koymen also sees some long-term holders returning to net accumulation, while large investors are buying into recent weakness. However, sustained price support will likely require bitcoin ETF flows to turn positive and the Fed to begin easing rates, Sygnum says. (jason.chau@wsj.com)
0043 GMT - Asian currencies consolidate against the dollar in early trade, but may be supported by risk-on sentiment. The markets have shrugged off Middle East tensions as oil prices reversed lower, two strategists at OCBC Group Research say in a research report. This has eased inflation fears, the strategists say. The greenback "traded modestly softer [overnight], likely reflecting the improvement in broader risk sentiment," the strategists add. The U.S. dollar is little changed at 162.35 yen, and is flat at 1.2922 Singapore dollars, according to LSEG data. (ronnie.harui@wsj.com)
(END) Dow Jones Newswires
July 09, 2026 23:34 ET (03:34 GMT)
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