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

0859 ET - The Canadian dollar falls to an 18-month low against the U.S. dollar after data showed Canada unexpectedly shed jobs again in September. Employers cut 68,300 jobs in September after 41,700 jobs lost in August. Economists in a WSJ survey had expected a 9,000 increase in employment. The data dampen the prospect of the Bank of Canada raising interest rates on Oct. 28. The U.S. dollar rises to 1.4298 Canadian dollars, its highest level since April 2025, compared to 1.4231 before the data, according to LSEG data. (renae.dyer@wsj.com)

0750 ET - Major economies are expected to experience faster growth, mainly driven by the U.S. AI expansion which is spilling into other industries and economies, J. Safra Sarasin Sustainable Asset Management's Raphael Olszyna-Marzys says in a note. High energy prices are also likely to drive up inflation, causing central banks to raise interest rates, he says. J. Safra Sarasin Sustainable Asset Management forecasts the U.S., U.K., and European Central Banks will raise interest rates to 5.0%, 4.25%, and 3.0%, respectively, by 2027. (miriam.mukuru@wsj.com)

0746 ET - Spain's general election will hinge on the subject of housing, Pablo Muylle at ING says in a note. Expanding protections for tenants can ease the housing crisis, but such measures won't solve the underlying issue of insufficient supply. Administrative bottlenecks and labor shortages have limited the construction of new homes, which has in turn driven up rents. In the upcoming election, the incumbent Socialist party favors rent caps and eviction protection, while the centre-right Popular Party is looking to strip back regulation to encourage investment. Each side holds part of the answer, Muylle says. "Tenant protection has clear social value... But protection primarily determines how an existing shortage is distributed. It cannot, on its own, increase the number of homes." (don.forbes@wsj.com)

0735 ET - The Swiss franc should strengthen further following the sharp widening of spreads in French-German government bond yields, J.P. Morgan analysts say in a note. The low-yielding franc was previously negatively correlated to European spreads widening as it was driven partly by central bank tightening, which encouraged carry strategies, they say. Carry trades involve borrowing in currencies with low yields to invest in currencies with higher yields. The more aggressive widening in spreads recently reflects French debt concerns, causing markets to price in weaker growth and unwind carry trades. As a safe haven, the franc is sensitive to European growth, they say. The euro falls 0.1% to 0.9316 francs, having reached a 10-week low of 0.9258 last week, LSEG data show.(renae.dyer@wsj.com)

0717 ET - Morgan Stanley maintains its exposure to the intermediate segment of the Japanese government bond curve, expecting both shorter- and longer-tenor bonds to underperform. "Faster Bank of Japan hike pricing could compress term premia through financial-conditions concerns, while super-long resilience appears vulnerable to a reversal in GPIF [Government Pension Investment Fund] repatriation expectations," strategists Koichi Sugisaki and Hiromu Uezato say in a note. Super-long JGB yields could face renewed upward pressure as pension rebalancing following yen strength likely shifts allocations from domestic to foreign assets. Meanwhile, yen weakness could sustain hawkish front-end pricing as markets focus more on political developments rather than economic fundamentals, they add. (emese.bartha@wsj.com)

0713 ET - Evidence of economic resilience in Europe should help stabilize the euro after recent losses on French fiscal concerns, MUFG Bank's Derek Halpenny says in a note. Germany's government raised its forecast for economic growth to 1.3% in 2026 and 1.1% in 2027 from previous forecasts of 0.5% and 0.9% respectively. "Growth had been downgraded in response to the war but the new estimate for this year is above the 1.0% estimate at the start of the year underlining the level of resilience," Halpenny says. This resilience will help maintain current market pricing for European Central Bank interest-rate rises, he says. The euro is steady at $1.1205, having hit a more than 16-month low of $1.1160 Monday, according to LSEG.(renae.dyer@wsj.com)

0712 ET - French government debt poses greater risks than Greece did during the eurozone sovereign debt crisis, Commerzbank's Joerg Kraemer says in a note. Public debt across the eurozone currently averages around 90% of GDP, compared with 80% in 2009, Kraemer notes. Even a small country like Greece brought the currency area close to collapse, so the systematic risks posed by a French debt crisis are even greater. Openness to fiscal reform is also weaker today, he says. Still, France has stronger institutions and greater financial capacity than Greece did, while eurozone banks are better capitalized. The ECB also has bond-purchase tools to contain market stress. "We do not expect a new sovereign debt crisis with strong contagion effects...although the risk that things could turn out differently is rising." (don.forbes@wsj.com)

0644 ET - Germany's economic recovery is likely to continue after the country's economic prospects improved in September, according the Commerzbank's leading Early Bird indicator. "The global economic environment has improved compared to the previous month, and the weaker euro is making German products somewhat more competitive on the world market," economist Ralph Solveen says in a note. The ECB's recent interest-rate increases have reduced the tailwind from monetary policy, but rates still remain comparatively low, supporting economic activity, he says. Higher government spending is also expected to continue supporting growth. "While high energy prices and the disruptions to industry caused by low water levels in many rivers may have slowed growth in the third quarter, this hardly marks the end of the current recovery." (don.forbes@wsj.com)

0627 ET - The cost of insuring French government bonds against default remains fairly high due to fiscal and political concerns. "These points to investors increasingly expressing concerns around France's medium-term fiscal and credit outlook," Barclays strategists say in a note. The French five-year credit default swaps trade at 79 basis points, close to the multi-year high of 84bps reached last week, S&P Global Market Intelligence data show. (miriam.mukuru@wsj.com)

0623 ET - The U.S. dollar stays steady while Treasury yields rise as bond investors try to find an equilibrium level after this week's roller coaster which saw 10- and 30-year yields rising to new 24-year highs earlier this week. Prospects of further Federal Reserve's interest-rate hikes following the one in September have eased slightly, capping yields, at least temporarily. "Federal Reserve rhetoric has become more cautious since last week's softer-than-expected PCE inflation and labor-market data, although policymakers have not abandoned the broader tightening bias," DHF Capital S.A's Bas Kooijman says in a note. The DXY dollar index is stable at 102.10. The 10-year Treasury yield rises 2.2 basis points to 5.255%, according to Tradeweb. (emese.bartha@wsj.com)

0601 ET - The euro recovers above $1.12 on broad-based dollar softness but the single currency is struggling to gain ground against other European currencies as French debt concerns persist, ING's Francesco Pesole says in a note. "It's a sign that FX markets aren't ready to scale back the French fiscal premium." French right-wing presidential candidate Marine Le Pen's fiscal tightening promise won't be enough to turn the tide for French government bonds and the euro might keep suffering for longer, he says. The euro rises 0.1% to $1.1216 after reaching $1.1160 Monday, its lowest level in more than 16 months, according to LSEG. (renae.dyer@wsj.com)

0600 ET - Upcoming data could show Canadian employment rose over 10,000 in September after roughly 42,000 job losses in August but this shouldn't have a major impact on the Canadian dollar, ING's Francesco Pesole says in a note. The figures are unlikely to boost the prospect of the Bank of Canada raising interest rates in October, although should support a move by December, which is fully priced in, he says. The Canadian dollar's performance is also being driven by the U.S. dollar. The U.S dollar trades flat at 1.4227 Canadian dollars. "Improvement in global bond markets remains necessary for the pair to return sustainably below 1.420," Pesole says in a note. The data are due at 1230 GMT.