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

0846 GMT - The decline in Germany's consumer confidence index reflects the continued rise in energy prices, domestic political turmoil and the recent jump in fuel prices following the expiry of the temporary tax cut, Pantheon Macroeconomics' Claus Vistesen says in a note. The sentiment indicator, published by the Nuremberg Institute for Market Decisions and GfK, fell to minus 30.6 in October, from minus 26.8 in September. The data signal a cautious German consumer, focused on building savings and worried about future income, Vistesen says. This contrasts with the recent upbeat message from the Ifo and PMI surveys. "We're forecasting modest growth in German consumer spending in the third and fourth quarters of just 0.1% and 0.2%, respectively," he says. (edward.frankl@wsj.com)

0833 GMT - Japanese Finance Minister Satsuki Katayama's remarks Friday about President Trump expressing concerns over the yen's weakness raises the prospect of further joint U.S.-Japanese currency interventions, MUFG Bank's Derek Halpenny says in a note. The comments underline Japan's ongoing efforts to portray that it remains willing to stem the yen's weakness as a continued joint strategy, he says. "It's unusual for the U.S. to act jointly with Japan beyond one occasion so acting jointly again would be a strong message to the markets." That is possible given the Bank of Japan raised interest rates last week and indicated there was more to come, he says. The dollar falls 0.5% to 158.07 yen after Katayama's comments. (renae.dyer@wsj.com)

0824 GMT - The Swiss franc could fall further after the Swiss National Bank failed to push back against a weaker currency and send strong signals about possible future rate increases, MUFG Bank's Derek Halpenny says in a note. The SNB failed to convey concerns about inflation risks and removed its reference to an "increased willingness" for currency interventions at Thursday's meeting, he says. This opens scope for renewed franc selling, particularly if global yields continue rising, he says. "Investors now are effectively charged a bigger premium for using the franc as a safe haven and for now investors do not believe that premium is worth paying." The euro rises 0.3% to 0.9444 francs. It hit a 17-month high of 0.9480 francs last week, LSEG data show. (renae.dyer@wsj.com)

0723 GMT - Yields on U.K. government bonds, or gilts, fall following a global bond selloff on Thursday that lifted U.S. Treasury yields to multiyear highs. Sentiment towards bonds improves as oil prices fall, with Brent crude trading down 0.8% at $105.73 amid hopes of a U.S.-Iran truce that could reopen the Strait of Hormuz. This mildly eases inflation concerns, although oil prices remain at very high levels and uncertainty over the situation in the Middle East is still high. U.K. investors are also jittery ahead of next month's budget as public finances are very stretched. The 10-year gilt yield falls 3.9 basis points to 5.338%, having risen as high as 5.393% on Thursday, Tradeweb data show. (jessica.fleetham@wsj.com)

0719 GMT - The Japanese yen looks set to recover as the Bank of Japan shifts to a faster pace of interest-rate rises and the prospect of Japanese investors rotating back towards domestic assets rises, Goldman Sachs strategist Karen Reichgott Fishman says in a note. "Faster rate hikes have reduced the inflationary impact of expansionary fiscal policy, taking pressure off the currency.". While a shift in portfolio flows remains mostly speculation, the higher probability of it occurring is positive for the yen along with its cheap valuation, boosting its attractiveness as a portfolio hedge, she says. Goldman expects the dollar to reach 150 yen in 12 months, compared to its previous forecast of 165. The dollar falls 0.5% to 158.00 yen. (renae.dyer@wsj.com)

0710 GMT - The Singapore dollar is likely to maintain its resiliency despite the Federal Reserve moving into a tightening phase, UOB strategists say in a report. The Monetary Authority of Singapore tightened policy twice this year, raising the rate of appreciation of the Singapore dollar nominal effective exchange rate band to about 1.25% per annum. "This appreciation bias functions as an automatic stabilizer for the [Singapore dollar]," UOB says. Singapore's exchange rate-based monetary policy also provides a structural buffer against headwinds of renewed U.S. dollar strength, it adds. The U.S. dollar is 0.1% lower at 1.2781 Singapore dollars, LSEG data show.(amanda.lee@wsj.com)

0707 GMT - Gold prices are headed for a weekly loss as a stronger dollar and growing expectations that the Federal Reserve will raise interest rates again next month weigh on the precious metal. In early European trading, New York futures rise 0.3% to $4,311 a troy ounce but are down 2% on the week. The U.S. dollar index is instead headed for a weekly gain, making dollar-denominated commodities more expensive for overseas buyers. "Investment metals faced a bond-market stress test, with surging Treasury yields supporting a stronger dollar and raising the opportunity cost of holding non-yielding assets," analysts at Saxo Bank say. According to the CME Group's FedWatch tool, traders are now pricing in a 73% probability of a rate hike in October. (giulia.petroni@wsj.com)

0652 GMT - Eurozone government bond yields fall in opening trade as U.S. Treasury yields stabilize after a light selloff in Asia and as oil prices move slightly lower. There is no government bond supply in the eurozone on Friday, but France and Spain will announce details for their auctions next week. The 10-year Bund yield falls 3.1 basis points to 3.575%, having hit 3.611% on Thursday, the highest since 2009, according to Tradeweb. (emese.bartha@wsj.com)

0649 GMT - Bitcoin edges lower as the ongoing Middle East conflict and expectations for further interest-rate rises by the Federal Reserve dampen risk sentiment. Bitcoin is under pressure from the macro environment rather than a collapse in institutional demand, Zaye Capital Markets analyst Naeem Aslam says in a note. "Rising Treasury yields, stronger U.S. economic activity and higher oil prices have increased expectations that monetary policy could remain restrictive, making high-duration and risk-sensitive assets less attractive." Bitcoin falls 0.5% to $83,959, having pulled back from its highest level since late January reached Monday at $87,315, LSEG data show. (renae.dyer@wsj.com)

0642 GMT - The dollar eases slightly but remains close to an eight-week high, supported by expectations for further U.S. interest-rate increases. Federal Reserve officials John Williams and Anna Paulson said on Thursday that further policy tightening might be needed while the Fed's Beth Hammack said inflation pressures remain elevated. "As long as U.S. macro data shows no signs of cooling, the Fed will remain firmly on a tightening bias, and we continue to expect the euro versus the dollar to trend even lower from here," Danske Bank's Mohamad Al-Saraf says in a note. The DXY dollar index falls 0.1% to 101.147 after hitting an eight-week high of 101.398 Thursday. The euro is flat at $1.1384 after reaching an eight-week low of $1.1358 Thursday. (renae.dyer@wsj.com)

0627 GMT - The summit between President Trump and Chinese leader Xi Jinping shows that limited surprises is good news, ING's Lynn Song says in a note. As widely expected, there weren't many major breakthroughs on key issues such as artificial intelligence and geopolitics. "Progress on tech competition and geopolitical developments is hard to come by," Song says. Still, that doesn't mean the summit was for nought, he adds. The summit reflects wider efforts to sustain regular dialogue, lower the risk of misunderstandings and avoid costly missteps. This comes at a time when economic growth is becoming more uneven and fragile across many countries, Song says. (amanda.lee@wsj.com)

0559 GMT - Broad index and retirement funds are now tied to the AI boom, with technology stocks accounting for about 40% of the S&P 500. Only three chip makers account for more than 25% of the MSCI EM index, says Ipek Ozkardeskaya, senior analyst at Swissquote. AI is the "cornerstone that must not crack," she adds. For now, U.S. equities will have the seasonal wind at their backs and the equity rally could extend into the year-end, she says. The worst-case scenario would be that something cracks in the AI story, triggering a notable pullback, she adds.