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

0907 ET - The Japanese yen is failing to benefit from speculation about the Bank of Japan accelerating interest-rate rises as debt sustainability concerns persist, Societe Generale's Kit Juckes says in a note. Without fiscal policy tightening along with a sharp fall in oil prices and a narrowing of the gap between short- and long-term Japanese government bond yields, another test of policymakers' willingness to intervene and defend the yen seems inevitable, he says. Lower oil prices and upward revisions to Japanese growth forecasts could support the yen later this year "but we have to get out of the current U.S./Iranian impasse first." The dollar falls 0.1% to 159.19 yen after reaching a 12-day high of 159.54 Wednesday, LSEG data show. (renae.dyer@wsj.com)

0904 ET - Richmond Fed President Tom Barkin says inflation will make it back to the central bank's 2% target, but its path to get there remains an open question. "Will the Fed need to raise rates further, or is inflation already on a path down to target?" Barkin says in a speech before the Greenville Chamber of Commerce in South Carolina. He argues that inflation was on track early last year but shot back up due to tariffs, an oil price shock and a flood of AI spending. Tariff rates have settled, the Middle East conflict is heading toward a resolution and the data center boom should ease at some point, Barkin says. But the elevated inflation seen today could be more "embedded" as supply chain challenges persist and AI continues to pull in major investments, he says. (dean.seal@wsj.com)

0859 ET - Treasury yields edge lower as U.S. data support the case for another hold, rather than a hike, by the Fed. Wholesale inflation is slower than expected, with July PPI flat versus the +0.2% WSJ consensus forecast. Weekly jobless claims rise to 209,000 from an upwardly revised 200,000, while economists surveyed by WSJ forecast 204,000. The numbers come on top of a moderate July CPI, backing up the notion that the Fed could hold again in September. The yield decline intensifies after the data. The 10-year is at 4.661%, down from yesterday's settle of 4.682%. The two-year falls to 4.165% from 4.198%. (paulo.trevisani@wsj.com; @ptrevisani)

0859 ET - U.S. technology sector credit could continue facing headwinds over the coming years due to rising debt issuance, CreditSights' Logan Miller says in a webinar. U.S. investment-grade tech sector credit supply so far this year is at a record level driven by hyperscalers' debt issuance, Millers says. Hyperscalers are large technology companies that manage data centers and provide advanced computing services. Heavy debt supply is contributing to higher corporate yields and sovereign yields, he says. Valuations on tech sector credit, nonetheless, look relatively attractive given the underlying corporate financial positions and credit metrics, Miller says. (miriam.mukuru@wsj.com)

0815 ET - The Norwegian krone's losses are likely to be limited as the Norges Bank has kept another interest-rate rise firmly in play, Monex Europe's Barry van der Laan says in a note. The Norges Bank left rates at 4.25% Thursday as expected but stressed inflation remains too high and another rate increase might still be required. "We continue to see a September hike as a likely option rather than a certainty, with incoming inflation, wage data, and fresh forecasts now key," van der Laan says. Any renewed evidence of persistent inflation could rebuild expectations for a September rate rise and lift the krone, he says. The euro rises 0.3% to 10.9748 krone as oil prices fall. (renae.dyer@wsj.com)

0805 ET - The Turkish lira is likely to weaken significantly further by the end of the year, Commerzbank's Tatha Ghose says in a note. "Turkey's reliance on energy imports and its deep trade and financial linkages to the Middle East create a problematic situation and exacerbating pre-existing balance of payments vulnerabilities." The central bank might soon have to resume cutting interest rates due to political pressure even though inflation remains elevated and at risk of rising given the energy price shock and expected food-price spike due to drought, he says. The dollar trades steady at 47.7703 lira, near the record high of 47.7791 reached earlier, LSEG data show. Commerzbank expects it to reach 53.000 by December. (renae.dyer@wsj.com)

0734 ET - The Federal Reserve could leave interest rates unchanged for the remainder of 2026 and in the first half of 2027, CreditSights' Logan Miller says in a webinar. The U.S. annual headline inflation slowed down to 3.4% in July from 3.5% in June. Recently released jobs data also showed deceleration in wage growth and weak nonfarm payroll numbers. These data raise the possibility of the Fed keeping rates on hold in September, Miller says. Uncertainty around the U.S. labor market is sufficient to keep the Fed on hold over the coming months, he says. Investors price in one quarter-point Fed rate increase in 2026, LSEG data show. (miriam.mukuru@wsj.com)

0723 ET - Bitcoin rises marginally as U.S. stock futures climb after subdued U.S. inflation data Wednesday dampened expectations for an immediate interest rate rise by the Federal Reserve. "With both headline and core inflation cooling in July, the Fed can afford to take more time deciding whether tighter policy is warranted," XM analyst Raffi Boyadjian says in a note. However, the market reaction is somewhat muted as a rate increase in September cannot be ruled out given further data are due before the meeting and inflation remains too high, Boyadjian says. Moreover, inflation risks are still elevated without a deal on reopening the Strait of Hormuz, the analyst adds. Bitcoin rises 0.1% to $63,577, LSEG data show. (renae.dyer@wsj.com)

0617 ET - The dollar falls along with Treasury yields as oil prices decline after OPEC and the International Energy Agency lowered their crude demand outlook for 2026. The IEA expects oil demand to fall by 1.6 million barrels per day this year. OPEC expects demand growth of 580,000 barrels per day, down from the 780,000 previously anticipated. Meanwhile, data on Wednesday showed U.S. inflation eased to 3.4% in July as expected, prompting markets to pare expectations for an interest-rate rise at the Federal Reserve's September meeting. The DXY dollar index falls 0.1% to 99.895. The 10-year Treasury yield falls 2 basis points to 4.671%, according to LSEG. (renae.dyer@wsj.com)

0559 ET - The euro could strengthen modestly against the dollar by year-end as the Federal Reserve is likely to refrain from raising interest rates, ING's Francesco Pesole says in a note. There is plenty of scope for front-end Treasury yields and the dollar to fall if the Fed keeps rate unchanged, he says. The Fed could sound gradually more cautious about raising rates, he says. "Our target for [the euro] in the coming weeks remains $1.160, followed by $1.17 in autumn and $1.18 by year-end." However, any renewed escalation in the Middle East conflict would support the dollar, he says. The euro trades flat at $1.1529. (renae.dyer@wsj.com)

0550 ET - Unexciting U.S. inflation data for July leave the dollar with little sense of direction ahead of the Federal Reserve's Jackson Hole Symposium on August 27-29, ING's Francesco Pesole says in a note. Data Wednesday showed inflation eased to 3.4% in July from 3.5% in June, in line with expectations. Markets slightly trimmed U.S. interest-rate rise expectations after the data but a 25 basis-point move remains fully priced for December, according to LSEG. There is a reluctance to price out further Fed tightening, keeping the dollar supported, Pesole says. Fed communication signalling possible rate rises is the main culprit, he says. The DXY dollar index falls 0.1% to 99.964 after earlier reaching a two-week high of 100.083. (renae.dyer@wsj.com)

0515 ET - U.K. second-quarter GDP data is less likely to shift the Bank of England's interest-rate outlook "given the lack of a bigger surprise," Mizuho's Evelyne Gomez-Liechti says in a note. The economy grew by 0.4% in the second quarter, down from 0.6% growth in the first quarter and in line with the consensus forecast by economists in a WSJ poll. U.K. inflation and labor market data due next week are likely to be the key drivers for the BOE rate outlook, she says. Markets fully price in the possibility of one quarter-point BOE rate rise in 2026, LSEG data show.