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

1901 ET - U.K. retail footfall remained under pressure in July, as high temperatures discouraged shopping trips, according to a report released Friday. Total footfall in the U.K. fell by 2.1% on year during the four weeks to Aug. 1, the latest report from the British Retail Consortium and retail technology company Sensormatic shows. While the figures remain down, the trend shows a slight improvement on the 3.4% drop recorded in June. "The heatwave continued to bear down on retail footfall in July, with high streets worst affected," BRC Chief Executive Helen Dickinson says. London was hit particularly hard as soaring temperatures made travel less attractive, with shoppers opting to stay home, she adds. (andrea.figueras@wsj.com)

1555 ET - Treasury yields rise ahead of Friday's BLS jobs report, as job cut plans remained calm in July alongside low jobless claims figures from the Labor Department. Oil prices rose as talks to reopen the Strait of Hormuz continue. Friday's employment report is unlikely to shift the Fed's focus to the employment side of its mandate; economists polled by The Wall Street Journal expect 83,000 jobs added. The 2-year yield rose 0.064 percentage point to 4.242%. The 10-year yield rose 0.054 percentage point to 4.670%. (jessica.coacci@wsj.com)

1445 ET - Ahead of tomorrow's jobs report, economists polled by The Wall Street Journal expect 83,000 jobs to be added. With the Fed describing the labor market as mostly stable, the July jobs report is unlikely to persuade officials to shift their focus to the employment side of their mandate. "Unless underlying inflation pressures broaden and become more persistent or labor market momentum reaccelerates meaningfully, we believe the Fed is likely to remain on hold through year-end," EY-Parthenon economists Gregory Daco and Lydia Boussour write in a note. (jessica.coacci@wsj.com)

1356 ET - Mexico's annual headline inflation likely slowed for a fourth straight month in July, helped by lower fresh food prices and continued government tax relief on energy. The consumer price index is expected to have edged up 0.05% last month, pushing the 12-month inflation rate down to 3.14% from 3.37% in June, according to a WSJ survey of analysts. Core CPI, which excludes perishable food and energy prices, is seen rising 0.22%, with the annual rate easing to 3.94% from 4.03% in June. National statistics institute Inegi is scheduled to report July inflation on Friday. (anthony.harrup@wsj.com)

1312 ET - The number of homes going under contract fell 3.7% week-over-week nationwide, Redfin says. That's the steepest decline since 2022, as would-be buyers pressed pause amid high mortgage rates. The 30-year fixed-rate mortgage is averaging 6.69% according to Freddie Mac versus 6.63% a year ago at this time. Mortgage-purchase applications were down 4% from a week earlier, as of the week ending July 29, Redfin says. Google searches of "homes for sale" were down about 3% from a month earlier, as of August 2nd, according to Redfin. For the four weeks ending Aug. 2, the median sale price was $406,362, 2.9% higher than last year. The median asking price was $398,666, 1.1% higher. Pending sales were 1.9% lower than a year ago, at 311,150, the lowest level in more than five months, Redfin says. (chris.wack@wsj.com)

1246 ET - Canada's economic outlook is expected to improve after a soft start this year, but risks remain from U.S. tariffs and higher fuel prices, Fitch Ratings says. While Canada's economy was in a technical recession in 1Q, more recent data suggests a downturn will not persist, according to Fitch. Canada saw an increase in consumer spending in 1Q, led by food and financial services, Fitch says. And while a soft labor market led to consumers drawing down savings and relying more on credit cards, a rebound in employment and wages in 2Q augurs a mending labor market, Fitch adds. (stephen.nakrosis@wsj.com)

1042 ET - The Swiss franc is unlikely to weaken much further as the Federal Reserve might refrain from raising interest rates and the European Central Bank could cut rates next summer, ING analysts say in a note. More sustainable franc falls against the euro would require solid eurozone growth and a larger ECB tightening cycle which look unlikely, they say. The franc's recent decline is driven by widening rate differentials as the Swiss National Bank is expected to keep rates at 0% while rates rise elsewhere. The euro rises 0.2% to 0.9337 francs, having reached a seven-month high of 0.9350 last week, according to LSEG. ING expects it to reach 0.94 in the near term before falling to 0.92 in six months. (renae.dyer@wsj.com)

1027 ET - The Gulf's non-oil recovery is taking hold, but its sustainability depends on the Strait of Hormuz reopening for an extended period, Capital Economics' Nicolas Crittenden says in a note. The GDP-weighted Gulf whole-economy purchasing managers' index rose to 52.5 in July from 51.8 in June, according to Capital Economics. This reflected a rebound in the UAE, an easing downturn in Qatar and signs of recovery in Kuwait, while Saudi Arabia remained the strongest of the Gulf's four biggest economies. Crittenden says the initial reopening of Hormuz helped drive the pickup in activity, but whether the recovery continues will depend on whether current negotiations over reopening the waterway prove successful. (farhan.rafid@wsj.com)

1024 ET - Saudi Arabia's resilience to the closure of the Strait of Hormuz masks a worsening underlying fiscal position, says William Jackson, chief emerging markets economist at Capital Economics, in a note. Access to the Red Sea helped keep oil exports flowing, while higher oil prices offset lower production and lifted second-quarter oil revenue 22% from a year earlier, according to Capital Economics. However, Jackson says the recent windfall only masks a budget deficit running at around 7% of GDP on a four-quarter basis, compared with 2.5% at the end of 2024. He expects oil prices to fall back, pushing public debt above 50% of GDP within the next few years and leaving the government with limited room to provide fiscal stimulus if another shock hits. (farhan.rafid@wsj.com)

1022 ET - The dollar could recover in the coming weeks if the recent joint intervention by the U.S. and Japan to strengthen the yen fades, Monex Europe analysts say in a note. "Longer term, however, fundamentals continue to favor modest weakening, and as such, our year-ahead call remains little changed, projecting the DXY dollar index around 98 over a 12-month horizon." U.S. labor market conditions are somewhat weaker than some official data suggest, they say. A series of soft nonfarm payroll numbers should disabuse markets of the notion that the Federal Reserve will raise interest rates, weighing slowly but progressively on the dollar, they say. The DXY rises 0.1% to 99.765, having reached a seven-week low of 99.418 Monday. (renae.dyer@wsj.com)

1002 ET - The Czech koruna falls to its lowest in three weeks against the euro after the Czech National Bank kept interest rates at 3.75% The central bank said its previous rate increase "brought about the desired tightening of monetary conditions" and its main strategy now is to assess upcoming data and inflation risks. The decision to hold rates wasn't a surprise, Capital Economics economist William Jackson says in a note. Headline inflation remains below target and second-quarter growth wasn't as strong as expected, he says. Capital Economics expects the CNB could deliver two more rate rises early next year as underlying inflation is elevated. The euro rises 0.2% to a three-week high of 24.241 koruna. (renae.dyer@wsj.com)

0927 ET - U.S. interest rates could remain high due to growing demand for funding by corporates and the government, Federated Hermes' R.J. Gallo says in a note. Rising debt issuance by AI-linked companies and persistently high borrowing from the U.S. government suggest that interest rates could stay elevated to attract capital, he says.