The latest Market Talks covering FX and Fixed Income. Published exclusively on Dow Jones Newswires throughout the day.
0657 GMT - The U.S. dollar seems to be in a downward corrective phase against its Singapore counterpart, given its recent pullback below the 21-day exponential moving average, says Quek Ser Leang of UOB's Global Economics & Markets Research in a research report. A break of the greenback below the 55-day EMA, which is now near 1.2865 Singapore dollars, could possibly trigger a deeper correction, though not a major reversal, the senior technical strategist says. However, weekly moving average convergence divergence indicator is still comfortably in positive territory, so any U.S. dollar decline is expected to encounter solid support at June's low of S$1.2805, the strategist adds. The U.S. dollar is flat at S$1.2881, LSEG data show. (ronnie.harui@wsj.com)
0652 GMT - Sterling is little moved after data showed the economy grew 0.1% month-on-month in May as expected, with the focus on U.K. politics. This follows a 0.1% contraction in April. The data highlight how fragile the U.K.'s economic recovery remains, Ebury's Samuel Edwards says in a note. The recent resurgence in Middle East tensions is keeping businesses on tenterhooks, he says. Sterling trades steady at $1.3533 and the euro rises 0.1% to 0.8471 pounds, both little changed after the data. The euro hit a 13-month low of 0.8453 pounds on Thursday after media reports that potential prime minister in-waiting Andy Burnham could choose a treasury chief who is less likely to favor expansionary fiscal policy.(renae.dyer@wsj.com)
0614 GMT - There have been plenty of conflicting messages from U.S. President Trump in recent days, SEB's Jens Magnusson says in a note. "The ceasefire has been on and off, negotiations ongoing and suspended, the Strait of Hormuz closed and open, passages through the strait free, subject to tariffs, and then free again," the chief economist says, noting that this all took place since Sunday. On Thursday, Trump will deliver a prime-time address to the nation and is expected to cover a wide range of topics. (emese.bartha@wsj.com)
0557 GMT - Eurozone government bond yield spread widening Wednesday is likely to help the absorption of Spanish and French bond supply on Thursday, Commerzbank's Rainer Guntermann and Hauke Siemssen say in a note. Spain will auction 5 billion euros to 6 billion euros in 2029-, 2033- and 2056-dated bonds. France will offer 12 billion euros to 14 billion euros in nominal bonds, or OATs, and a further 1 billion euros to 1.5 billion euros in inflation-linked bonds. "However, the bulk of the OAT volume will come in medium-term tenors and yesterday's eurozone government bond spread widening has likely already made some space," the rates strategists say. "We therefore do not think that today's supply will lastingly weigh on markets." (emese.bartha@wsj.com)
0545 GMT - The European Central Bank, which raised interest rates in June, is expected to remain on hold next week, Morgan Stanley analysts say in a note. "The data received since the June meeting is keeping the ECB in between its mild and baseline scenarios, and recent remarks from the president and other Governing Council members confirm our and consensus expectations for a hold," the analysts say. More data is needed to decide on the next steps, they say, adding that the recent oil-price volatility is a stark reminder of the fundamental lack of certainty around the path of energy prices. "This alone should steer the ECB away from leaning strongly in any direction in either statement or press conference." (emese.bartha@wsj.com)
0532 GMT - U.S. Treasury yields rise slightly in Asian trade, driven by the short end of the curve. The current and elevated level of tensions between the U.S. and Iran, alongside uncertainty over passing through the Strait of Hormuz safely, could reignite inflation concerns. That said, oil prices are slightly lower, albeit still at high levels, with Brent oil at $84.45 per barrel, down 0.6%. "There is legitimate concern that talks between the U.S. and Iran aimed at a lasting resolution to the conflict will ultimately fail," analysts at Helaba say in a note. The two-year Treasury yield is up 1.9 basis points to 4.146%, while the 10-year yield is 1bp higher at 4.554%, according to Tradeweb. (emese.bartha@wsj.com)
0530 GMT - The Bank of Japan's latest survey signals that Japanese consumers' deep-rooted deflationary mindset has already been reversed. About 90% of respondents expect prices to rise further in the year ahead, the survey shows. The shift in consumer perception supports the central bank's pursuit of further interest-rate increases, as growing inflation expectations are expected to drive up the nation's underlying inflation. Amid persistent price pressures, the survey's diffusion index measuring livelihood conditions deteriorated, as the share of respondents who felt they were better off decreased while the proportion of those who felt worse off increased. (megumi.fujikawa@wsj.com)
0519 GMT - For the Federal Reserve, a cooler-than-expected PPI report is a welcome development, TruStage's Steve Rick says in a note. "It would suggest that inflation may be gradually moving closer to the Fed's goal and could reinforce expectations that policymakers can remain on hold rather than considering additional rate increases," the chief economist says. While the inflation fight isn't over, softer pricing data would be another step toward achieving a better balance between price stability and a healthy labor market, he says. (emese.bartha@wsj.com)
0516 GMT - U.S. producer price data for June, released Wednesday, could please the Federal Reserve, says Stephen Coltman, head of macro at 21shares, in a note. The PPI data confirm the weaker-than-expected inflation trend from the CPI, he says. "Barring an escalatory spiral in the Middle East, the Federal Reserve should be satisfied that current policy settings are sufficiently restrictive to get inflation gradually back towards the Committee's target," he says. (emese.bartha@wsj.com)
(END) Dow Jones Newswires
July 16, 2026 02:57 ET (06:57 GMT)
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