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

1041 ET - There are reasons not to read too much into the latest Canadian job numbers, Royal Bank of Canada's Claire Fan says. The data can be volatile, firstly. And Fan notes that 70% of the sharp drop in employment in September was among youth 15-24, a group that typically sees seasonal headwinds at this time of year after the school year starts. The economist adds important leading indicators suggest hiring demand hasn't retreated to a problematic extent since the latest U.S. tariffs were imposed. Fan expects progress in the labor market earlier in the year to be sustained, and the jobless rate to broadly edge lower through the end of 2026. (robb.stewart@wsj.com; @RobbMStewart)

1039 ET - Canada's labor market lost more ground in September with a second straight month of job losses after a stronger spring and summer run, Canadian Chamber of Commerce economist Anupriya Gangopadhyay says. For the Bank of Canada, the latest labor report adds to the case for a more dovish tone at its Oct. 28 policy decision, though it doesn't make a rate cut automatic, Gangopadhyay says. "The labor market is clearly softening, but the bank will still need to balance weaker hiring against inflation and broader uncertainty." (robb.stewart@wsj.com; @RobbMStewart)

1038 ET - The Bank of Canada is in a very difficult position since the conditions of the economy still merit some degree of accommodative monetary policy but inflation risks are rising, KPMG Canada's Daniel Hyun says. A second straight month of job losses last month makes his call for a December interest rate increase a more difficult one, he adds. The economist continues to anticipate a quarter percentage point increase, saying that as bad as the September labor data was it is notoriously volatile and the central bank is faced with threats to inflation and demands for credibility.(robb.stewart@wsj.com; @RobbMStewart)

1036 ET - A second consecutive month of sizable job losses in Canada washes away surprising strength in the job market through the early summer, and leaves employment up a muted 0.5% from a year ago, says Bank of Montreal's Douglas Porter. He says that while a large drop in education employment in September looks somewhat suspect, especially since it was entirely in one province, the underlying picture in other regions and industries doesn't inspire confidence. A pullback in manufacturing jobs may be an early warning of the weight from escalation in the U.S-Canada trade war. "On balance, we continue to believe that the appropriate stance by the Bank of Canada is watchful waiting, particularly so with employment suddenly clouding over." The weak jobs report for last month greatly diminishes the chances and rationale for interest rate increases, the economist says. (robb.stewart@wsj.com; @RobbMStewart)

1034 ET - The three-month average pace of employment in Canada is now in negative territory after back to back job losses in August and September, with an average decline of almost 12,000, Indeed's Sneha Puri says. Still, the economist adds Canadian employment is 0.5% higher than the same time last year. Puri doesn't expect employment to continue sliding at scale. Job postings have been fairly steady over the past year, with the Indeed Job Posting Index registering 100.8 at end-September, slightly higher than the 99.2 recorded a year prior. Puri says stable labor demand is an improvement from several years of decline. "Until we see a meaningful pick up in hiring activity, it makes sense to expect employment data to oscillate a bit between positive and negative readings." (robb.stewart@wsj.com; @RobbMStewart)

1033 ET - September was yet another very poor month for the Canadian jobs market, Fitch Ratings' Jessica Hinds says. The unemployment rate only ticked up to 6.5% but employment has now fallen by a cumulative about 110,000 over August and September alone, wiping out almost half the recovery seen in the spring and early summer, she says. Hinds says that looking ahead, surveys such as purchasing managers' indexes suggest that hiring demand will remain lacklustre heading into year-end. (robb.stewart@wsj.com; @RobbMStewart)

1027 ET - In a new Federal Reserve study with reference subjects 75 or older, the government says these families saw substantial gains in both median and mean net worth. Reference subjects younger than 35 saw median net worth decrease 23% to $33,000 and mean net worth fall 33% to $135,400. In contrast, families with reference subjects 75 or older saw substantial gains in both median and mean net worth. "The rise in net worth for the oldest age group is so large relative to younger age groups that, in contrast with the previous few survey years, families aged 75 or older had the largest net worth, exceeding levels by families that are nearly or recently retired," the Fed writes.(jessica.coacci@wsj.com)

1002 ET - A Fed survey on consumer finances finds that borrowers may be falling behind on loans or spending a larger share of their income on debt payments. The median debt payment-to-income ratio was 15.4 percent, up 2.0 percentage points from 2022, the survey says. The Fed suggests this may relate to the concurrent increase in interest rates for mortgages and consumer loans. Families with particularly high debt payment obligations relative to their incomes increased from 6.5 to 8.6 percent, a level last seen in the 2013 survey. In addition, between the 2022 and 2025 surveys, the share of families that reported being behind on loan payments sharply increased from about 12 percent to nearly 20 percent.(jessica.coacci@wsj.com)

0957 ET - The Swedish krona's scope to extend recent gains against the euro looks limited in the near term, Danske Bank's Jens Peter Sorensen says in a note. While the krona could benefit if the euro weakens further on French fiscal concerns, it's unlikely to see major appreciation, he says. The krona remains mostly dominated by external factors and until it strengthens on its own merits, Danske recommends buying the euro on any dips versus the krona, he says. The euro rises 0.1% to 11.1881 krona after earlier reaching a four-week low of 11.1625, according to LSEG. (renae.dyer@wsj.com)

0946 ET - It will take a big upside surprise to Canadian inflation data for September to bring the possibility of an interest rate rise later this month back into play after large back-to-back drops in employment and a tick up in the unemployment rate, Capital Economics' Thomas Ryan reckons. The 68,300 fall in employment in September was worse than the consensus forecast for a small rise and Capital's own forecast for no change. The numbers aren't as bad as the headline suggests. The economist notes a reversal of an unusually strong summer hiring season for young adults, plus weakness was concentrated in the public sector. Ryan continues to expect the Bank of Canada will wait until next year to begin to normalize the policy rate. (robb.stewart@wsj.com; @RobbMStewart)

0934 ET - Yields on U.K. government bonds, or gilts, fall faster than their eurozone peers as oil prices decline after President Trump said talks with Iran were going well. "Whilst markets are not holding their breath for a quick resolution to the conflict, it's encouraging that neither side is willing to abandon the negotiating table," XM's Raffi Boyadjian says in a note. News about the U.S.-Iran talks have caused market sentiment to improve. Ten-year gilt yields fall 6.6 basis points to last trade at 5.423%, Tradeweb data show. Ten-year Bund yields fall 4.2 basis points to 3.464%. (miriam.mukuru@wsj.com)

0922 ET - Canada's job market stumbled again in September with a surprise drop in employment for a second month running. The economy shed 68,000 jobs, where the consensus call of economists was for a thin 9,000 rise in employment. That pushed the unemployment rate up 0.1 percentage point to 6.5%. That returns it to where it was in June, and at the start of the year, but remains below the recent peak of 6.9% in April. Job losses were split between full- and part-time positions, and led by declines in educational services and health care and social assistance. Manufacturing also lost 12,700 jobs in what was the first full month since the Trump administration imposed fresh tariffs on goods imported from Canada.