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

0308 GMT - The Singapore dollar weakens slightly against its U.S. counterpart in the Asian session on a likely technical correction following broad-based strength across regional currencies on Fed Chair Powell's dovish remarks last Friday. However, the Singapore dollar's weakness will probably be limited by ongoing Fed rate-cut hopes, analysts say. Powell signaled that he may be open to lowering rates, four members of CBA Global Economic & Markets Research say. Hence, CBA now expects the Fed will next cut rates in September versus its earlier forecast of a rate reduction in October. USD/SGD is 0.1% higher at 1.2831. (ronnie.harui@wsj.com)

0303 GMT - The Bank of Korea is likely to stand pat on interest rates for a second consecutive time at Thursday's policy meeting. In a Wall Street Journal poll of 27 economists, 20 say they don't expect a rate change, while the remaining seven forecast a rate cut. A dovish hold would give the BOK space to monitor household debt trends, evaluate the effects of continuing fiscal stimulus, and track the Fed's policy stance, Goldman Sachs economists led by Goohoon Kwon say in a note. GS expects the BOK to cut rates in October. Most economists expect the BOK to slightly raise its 2025 GDP and inflation forecasts, citing stronger-than-expected 2Q growth data. (kwanwoo.jun@wsj.com)

0248 GMT - Political uncertainty in Thailand is expected to continue, Nomura economist Charnon Boonnuch writes in a report. The Constitutional Court is scheduled to rule Friday on a petition to dismiss suspended Prime Minister Paetongtarn Shinawatra over a leaked phone call with former Cambodian Prime Minister Hun Sen. Based on discussion with a political expert and most local investors, Nomura reckons Paetongtarn is likely to be dismissed. Given the weak ruling coalition, Nomura sees a risk of parliament being dissolved in early 2026, paving the way for elections. "In our view, the elections are unlikely to provide a permanent solution and instead prolong the political uncertainty," Charnon says. (amanda.lee@wsj.com)

0208 GMT - The Philippine central bank is expected to cut its policy rate by 25 bps on Thursday, Goldman Sachs' Yuting Yang and Hui Shan write in a note. They expect inflation to remain muted for the rest of the year. Headline inflation has fallen to a near six-year low and has remained below the BSP's 2%-4% target range for five consecutive months. Domestic activity also slowed in 2Q due to weaker government spending and investment growth, they say. (amanda.lee@wsj.com)

0132 GMT - Malaysia's inflation is expected to trend higher through 2025, partly due to a low base, CGS International economists Mas Aida Che Mansor and Nazmi Idrus say in a note. A stronger labor market, minimum-wage hikes and cash aid could support price increases, they say. Coming policy shifts, including the removal of egg subsidies in August and a revision of RON95 fuel subsidies in September, could also add upward pressure, while travel-related costs remain elevated. However, Bank Negara is projected to keep rates unchanged at its September meeting, as headline inflation has moderated so far this year, they add. CGS maintains its end-2025 Bank Negara policy rate forecast at 2.75%. (yingxian.wong@wsj.com)

0035 GMT - Fed Chair Powell's dovish speech last Friday likely gives more scope for a downward move in the dollar against the yen, Nomura's Global Markets Research team says in a research report. Powell's remarks increased the likelihood of a Fed rate cut at its September meeting, the team says, adding USD will probably continue to weaken in the near term. "We have a higher conviction on our short USD/JPY" trade, which has a target of 142.00 by end-October, the team says. There's also near-term focus on BOJ speakers such as policy board member Junko Nakagawa on the possibility for a rate increase by year-end, the team adds. USD/JPY is 0.4% higher at 147.49. (ronnie.harui@wsj.com)

0020 GMT - U.S. nonfarm payrolls data on Sept. 5 and CPI for August on Sept. 11 will set the scene for the Sept. 17 FOMC meeting, but it would take a large miss from either or both for the FOMC to not cut given Powell's comments at Jackson Hole, says Joe Capurso, economist at CBA. A cut in September will likely be the first of a series of cuts, with the FOMC set to cut again in October and December, he adds. CBA expects a final cut in March next year. (james.glynn@wsj.com; X @JamesGlynnWSJ)

0016 GMT - Japanese stocks are higher after Fed Chair Jerome Powell's signals of possible rate cuts boosted U.S. stocks on Friday. Metal and auto shares are leading gains. JX Advanced Metals is up 5.0% and Nissan Motor is 2.8% higher. USD/JPY is at 147.45, down from 148.51 as of Friday's Tokyo stock market close. Investors are closely watching any developments related to the war in Ukraine and domestic politics. The Nikkei Stock Average is up 0.8% at 42992.85. (kosaku.narioka@wsj.com; @kosakunarioka)

0014 GMT - JGBs edge lower in price terms in morning Tokyo session, weighed by risk appetite driven by Fed Chair Powell's comments last Friday. His remarks have had quite a reaction, and risk assets are higher, two members of ING's research team say in a note. Powell "effectively chose to endorse the market discount for a rate-cutting phase ahead," they add. The yield on the no. 378 JGB 10-year issue is up 0.5 bp at 1.600%. (ronnie.harui@wsj.com)

0006 GMT - The yen weakens against most G-10 and Asian currencies in early trade amid risk-on sentiment spurred by Fed Chair Powell's remarks last Friday. Powell has put a September rate cut on the table, noting "balance of risks may be shifting," NAB's Ray Attrill says in commentary. "Onus now looks to be on the intervening data between now and FOMC's Sept. 16-17 meeting" to prevent the Fed from agreeing to a 25bp rate cut, the head of FX Research says. USD/JPY rises 0.3% to 147.38 and EUR/JPY edges 0.2% higher to 172.47, LSEG data show. (ronnie.harui@wsj.com)

2350 GMT - The Aussie dollar jumped by 1% against the greenback after FOMC chair Powell indicated on Friday he may be open to cutting the Funds rate soon. AUD/USD began trading in the Asia day around 0.6490. Market pricing for a cut to the Fed funds rate in September increased from 73% to 84%, says Joe Capurso, economist at CBA. U.S. government bond yields fell across the curve and U.S. equities surged. Capurso says he now expects the FOMC to restart its interest rate cutting cycle in September. (james.glynn@wsj.com; @JamesGlynnWSJ)

2342 GMT - Fed Chair Jerome Powell's has correctly identified the risk that the U.S. labor market could weaken quickly in the coming month,warranting a resumption of monetary easing, ANZ says in a note to clients. Powell's baseline assumption is that tariffs will lead to a one-time lift in prices, though it may take a while to work through. ANZ says that early data signal that the impact of tariffs on consumer prices looks transitory. That, along with anchored inflation expectations, supports a gradual easing stance, the bank adds. The Jackson Hole speech has set the stage for a 25bp rate cut at the FOMC's September meeting, ANZ says. (james.glynn@wsj.com; X @JamesGlynnWSJ)

(END) Dow Jones Newswires

August 24, 2025 23:08 ET (03:08 GMT)

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