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

0840 GMT - Sterling investors potentially face a volatile period given fiscal policy uncertainty, Commerzbank's Thu Lan Nguyen says in a note. It's unclear how the newly formed U.K. government under Prime Minister Andy Burnham will handle the difficult balance between fiscal sustainability and stimulating growth, she says. Burnham's promise of a new economic models suggests he won't shy away from major measures, she says. "This, in turn, entails considerable risks for an already fragile market sentiment." The government has announced plans to cap most single bus fares in England and cut VAT from electricity bills as part of Burnham's pledge to reduce the cost of living. The euro rises 0.1% to 0.8524 pounds. Sterling rises 0.1% to $1.3379 versus a softer dollar. (renae.dyer@wsj.com)

0822 GMT - The Monetary Authority of Singapore likely has room to retain its monetary-policy settings, given softer-than-expected core inflation prints in April and May, says OCBC Group Research's Christopher Wong in a note. Energy prices have eased from earlier highs, while pre-emptive policy tightening in April was likely partially sufficient to offset potential imported inflation pressures, he says. Still, renewed services inflation, sticky inflation expectations or broader passthrough from earlier import-cost pressures are expected to keep the risk of further tightening alive, he adds. Singapore's central bank uses the exchange rate as a policy tool for maintaining price stability, given the city-state's small and open economy. (megan.cheah@wsj.com)

0805 GMT - U.K. public finances remain stretched and its credit quality depends on the government delivering credible economic and fiscal plans against limited finances, Morningstar DBRS's Julia Specht says in a note. Public sector net borrowing fell 33.1% to 16 billion pounds ($21.4 billion) in June relative to a year ago, but borrowing in the fiscal year to June was 2.7 billion pounds above the forecast by the Office for Budget Responsibility. "A key credit consideration is whether [Prime Minister Andy] Burnham can pursue his policy objectives without weakening fiscal credibility," Specht says. (miriam.mukuru@wsj.com)

0759 GMT - The low-yielding Japanese yen and Swiss franc could stay under pressure as higher energy prices prompt markets to price in interest-rate rises for other central banks, ING's Chris Turner says in a note. The fact that equities are relatively firm despite higher energy prices could be weighing on the yen and franc as defensive currencies, he says. However, a far more important factor "appears to be low interest rates and central banks that will be slow to hike." The dollar falls 0.2% to 162.90 yen after reaching a 40-year high of 163.23 Tuesday, LSEG data show. The dollar falls 0.1% to 0.8118 francs but stays near a one-week high of 0.8133 reached overnight. (renae.dyer@wsj.com)

0732 GMT - Yields on U.K. government bonds rise as soaring oil prices raise the prospects of high inflation and the possibility of the Bank of England increasing interest rates later this year. U.K. annual inflation for June decelerated to 2.6% from 2.8% in May due to a brief drop in oil prices in June following the U.S.-Iran ceasefire deal. Oil prices have resumed rising after the Middle East conflict resurfaced, with Brent crude rising 2.4% on Wednesday to $93.3 a barrel. Ten-year gilt yields climb 1.3 basis points to last trade at 5.041%, Tradeweb data show. (miriam.mukuru@wsj.com)

0723 GMT - A surge in fundraising by Chinese artificial-intelligence companies reflects both genuine capital needs and a favorable but potentially temporary market window, says Charu Chanana, chief investment strategist at Saxo Markets. "Chinese AI companies are capitalizing on strong investor appetite before the market becomes more selective," Chanana says, pointing out that companies across the AI value chain have already raised more than US$10 billion in Hong Kong in the first half of 2026. She adds that there is "sufficient liquidity for the strongest offerings, but probably not enough to support every company at every proposed valuation." (tracy.qu@wsj.com)

0723 GMT - Bitcoin falls modestly as investors take profits after the cryptocurrency reached a five-week high in the previous session. Tuesday's gains were driven by renewed institutional demand, regulatory optimism and investors being forced to close earlier bets against bitcoin as the cryptocurrency strengthened, Zaye Capital Markets analyst Naeem Aslam says in a note. However, the escalating U.S.-Iran conflict create uncertainty for bitcoin prices, he says. "Bitcoin may benefit from demand for assets operating outside conventional financial channels, but during sudden geopolitical shocks it often behaves like a high-risk technology investment, leaving it vulnerable to rapid selling when investors reduce exposure." Bitcoin falls 0.8% to $65,870 after reaching a high of $66,919 Tuesday, LSEG data show.(renae.dyer@wsj.com)

0716 GMT - June's fall in annual U.K. inflation to 2.6% all but rules out an interest-rate increase at next week's Bank of England meeting, RSM UK's Thomas Pugh says. While headline inflation came in below the central bank's forecast, the decline was largely driven by lower food, fuel and energy inflation. More importantly for policymakers, services inflation--a key gauge of domestic price pressures--matched expectations. Pugh expects inflation to rebound to around 3.3% in the fall as higher energy costs, supply-chain pressures and increased food prices feed through, with a risk of a higher rate if oil prices surge further. He expects rates to remain unchanged and sees no cuts before 2027. (don.forbes@wsj.com)

0710 GMT - The Bank of England is expected to leave interest rates unchanged at 3.75% as it awaits clear signs of the impact of the Middle East conflict, Quilter Cheviot's Richard Carter says in a note. The latest U.K. inflation data shows annual headline inflation moderated to 2.6% in June, from 2.8% in May as oil prices briefly dropped in June in the wake of the U.S.-Iran ceasefire. "With events in the Middle East still threatening to erupt back into a full-scale conflict as we saw earlier this year, this will continue to put pressure on the inflation rate." Markets price in a total of 40 basis points of BOE interest rate rises in 2026, LSEG data show. (miriam.mukuru@wsj.com)

0704 GMT - The dollar eases but remains close to a one-week high reached overnight as the U.S.-Iran conflict pushes up oil prices. The rise in oil prices along with natural gas and other commodity prices has lifted near-term inflation expectations, Deutsche Bank analysts say in a note. "That backdrop meant investors priced in more Federal Reserve rate hikes, and speculation even returned about a potential rate hike next week." The DXY dollar index falls 0.1% to 101.127 after reaching a high of 101.210 overnight. (renae.dyer@wsj.com)

0654 GMT - Eurozone government bond yields open slightly higher as oil prices increase, while lower-than-expected headline U.K. inflation for June has little immediate impact. Brent is up 2% to $92.85 per barrel as hostilities in the Middle East continue. U.K. headline inflation decelerated to 2.6% in June from 2.8% in May, coming in below analysts' expectations of 2.7% in The Wall Street Journal's poll. The 10-year Bund yield rises 1.6 basis points to 3.180%, according to LSEG data. (emese.bartha@wsj.com)

0652 GMT - Despite a slowdown in June, inflation in the U.K. is set to rise again going forward, says Suren Thiru at The Institute of Chartered Accountants in England and Wales. "June's slowdown is a false dawn as it may have already been reversed this month with higher energy bills, following Ofgem's energy price cap rise, likely to have lifted inflation above 3%." Any second-round inflation effects from higher energy prices will likely be limited by a sluggish economy. But escalating tensions in Iran has put 4% inflation back on the table, Thiru says. Today's data has ended prospects of a rate hike by the Bank of England in June, but high inflation will likely become a more notable economic headache for the government, deepening the cost‑of‑living crisis, he says. (don.forbes@wsj.com)

(END) Dow Jones Newswires

July 22, 2026 04:41 ET (08:41 GMT)

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