The latest Market Talks covering FX and Fixed Income. Published exclusively on Dow Jones Newswires throughout the day.

0739 GMT - Bitcoin eases slightly after reaching a three-week high Wednesday on the reduced prospect of the Federal Reserve raising interest rates after softer inflation data. The U.S. producer price index unexpectedly fell 0.3% in June, data showed Wednesday. It followed Tuesday's lower-than-forecast consumer prices data. While the data dampen rate rise bets, the flaring of U.S.-Iran tensions keep investors cautious over risky assets. Bitcoin falls 0.4% to $64,667 after reaching as high as $65,524 Wednesday, LSEG data show. "The $65,000-$66,000 area remains an important resistance zone, meaning bitcoin still needs sustained spot demand and stronger institutional inflows to convert the breakout into a durable upward trend rather than a short-lived positioning move," Zaye Capital Markets analyst Naeem Aslam says in a note. (renae.dyer@wsj.com)

0724 GMT - Yields on U.K. government bonds climb after GDP data showed the economy grew in May. The U.K. economy expanded by 0.1% in May, up from a 0.1% contraction in April, showing signs of resilience which potentially raises the possibility of the Bank of England increasing interest rates in the coming months. "Despite fears that momentum in the U.K. economy had faded, it has surprised with growth of 0.1% in May," Quilter's Lindsay James says in a note. Markets fully price in one-quarter point BOE interest rate increase in November, LSEG data show. Ten-year gilt yields rise 1.5 basis points to last trade at 4.966%, Tradeweb data show. (miriam.mukuru@wsj.com)

0722 GMT - The dollar remains near the four-week low reached Wednesday after lower-than-expected U.S. wholesale inflation data added to signs that price pressures are easing. The producer price index dropped 0.3% in June, against expectations for zero growth. It follows data Tuesday that showed consumer price inflation cooled more than expected in June. The data prompted markets to pare expectations for U.S. interest-rate rises. Meanwhile, Federal Reserve Chair Kevin Warsh pushed back against the notion that AI investments could lead to persistent inflation in the second day of his two-day testimony before Congress Wednesday. The DXY dollar index trades steady at 100.488, having reached a low of 100.353 Wednesday. (renae.dyer@wsj.com)

0707 GMT - The U.K. economy grew by 0.1% month-on-month in May, up from a 0.1% contraction in April. This indicates economic resilience, Pantheon Macroeconomics' Rob Wood says in a note. "Output is rising comfortably above the MPC's assumptions, so slack is probably building slowly if at all," he says. The growth raises the possibility of the Bank of England increasing interest rates in the coming months, Wood says. Markets fully price in one quarter-point BOE rate increase in November, LSEG data show. (miriam.mukuru@wsj.com)

0701 GMT - Eurozone government bond yields are marginally higher in opening trade, reflecting moves in U.S. Treasury yields overnight. Thursday's eurozone data calender is thin, while government bond supply will come from Spain and France. Brent oil prices appear to have stabilized around $85 per barrel, but prices of refined products continue to rise and European natural gas prices have also increased, Danske's Kirstine Kundby-Nielsen says in a note. "Combined with the recent flare-up in tensions and break of the ceasefire, this should keep the European Central on track to deliver an additional hike in September while we think a move in July is pre-emptive," she says. The 10-year Bund yield rises 0.8 basis points to 3.099%, according to Tradeweb. (emese.bartha@wsj.com)

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)

(END) Dow Jones Newswires

July 16, 2026 03:39 ET (07:39 GMT)

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