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

0950 GMT - Spirax-Sarco Engineering shares top the FTSE 100 fallers, down 5.8% after the steam-systems group said exchange rates could hit its full-year sales and profit by close to 4%. RBC Capital Markets said the update for the four months to October appeared in line with expectations, though it highlighted supply-chain disruption facing the company. With the shares up 17% since early October and at new all-time highs, they look expensive for an 'in-line' performer, RBC says. "Spirax is a high-quality business, in our view, but our underperform rating reflects its absolute and relative valuation, which appears challenging," RBC analyst Mark Fielding says. (philip.waller@wsj.com)

0923 GMT - The euro's brief drop below the key $1.13 level earlier was driven by a strong dollar but a surge in European gas prices didn't help either, ING says. "Negative terms of trade effects from higher energy prices are depressing the fair value of the EUR," ING analysts say. European gas prices jumped after a German court delayed the certification of the Nord Stream 2 gas pipeline on Tuesday. EUR/USD falls 0.1% to 1.1312, having reached a 16-month low of 1.1264 earlier, according to FactSet. (renae.dyer@wsj.com)

0918 GMT - The dollar extends its rise against the low-yielding euro after stronger-than-expected U.S. retail sales data Tuesday, which pushed EUR/USD to a 16-month low of 1.1264 overnight, according to FactSet, while the DXY dollar index hit a 16-month high of 96.2410. MUFG global markets analyst Derek Halpenny says the data "will inevitably reinforce the positive momentum for the U.S. dollar over the short term." MUFG sees scope for the market to fully price in three U.S. interest-rate increases in 2022, allowing the dollar to advance further. However, the speed of EUR/USD declines in recent days suggests some consolidation "may be imminent," Halpenny says. EUR/USD is last at 1.1316. Before last Wednesday's U.S. inflation data, EUR/USD traded above 1.1500. (jessica.fleetham@wsj.com)

0914 GMT - The big upside surprise in October's U.K. consumer prices data highlights the uncertainties as well as significant upside risks to the inflation outlook, Berenberg's senior economist Kallum Pickering says. Increasing producer prices due to supply-chain bottlenecks and rising energy costs haven't yet fully passed through into consumer prices, while surveys and high-frequency data suggest that global supply pressures won't abate soon, he says. "Following persistent upside surprises in inflation data over the course of 2021 so far, the peak and length of the current inflation spike remains highly uncertain," Pickering says. Berenberg expects U.K. annual inflation rates to peak above 5% early next year before easing at around 2.5%-3.0% by the end of the year and through 2023. (xavier.fontdegloria@wsj.com)

0859 GMT - The Bank of England is unlikely to ignore the rise in U.K.'s inflation rate to 4.2% on year in October from 3.1% in September, Capital Economics' chief U.K. economist Paul Dales says. "When coupled with yesterday's [Tuesday] decent labor-market release, the bigger-than-expected leap in CPI inflation in October makes an interest-rate hike in December even more likely," he says. The BoE is likely to raise rates to 0.25% from 0.1% in December, and then to 0.5% perhaps in February, Dales says. CPI inflation is expected to fall back sharply to around 2.2% by the end of 2022, so it is unlikely that rates are raised above 0.5% next year, he says. (xavier.fontdegloria@wsj.com)

0830 GMT Currently trading at 151.42, the Italian December BTP is under pressure and stands below its 50-period moving average at 151.55 on a 30-minute chart. From a technical point of view, the intraday RSI remains within its selling area between 50 and 30 and confirms the bearish bias. As a consequence, below horizontal resistance at 151.69, further weakness is expected toward Nov. 16 bottom at 150.95 and toward Nov. 12 low at 150.72 in extension. A third target is set at horizontal support at 150.31. Only a rebound above horizontal resistance at 151.69 would turn the outlook to bullish and favour a rise toward horizontal resistance at 151.99 and toward Nov. 15 top at 152.33 in extension. [This piece contains the opinions of Trading Central and does not constitute personalized investment advice or form part of any invitation or inducement to buy or sell any security. The author has been prohibited by Trading Central from purchasing or otherwise directly or indirectly acquiring any direct or indirect beneficial ownership of any instruments or markets for which Trading Central or its affiliates issues recommendations. To read more, visit bit.ly/1MehCU9.] (analysts-europe@tradingcentral.com)

0821 GMT Currently trading at CAD 1.2548, the U.S. dollar is on the downside and stands below its 50-period moving average on a 30-min chart at CAD 1.2551. Moreover, the intraday RSI remains within its selling area and confirms the bearish bias. As a consequence, below horizontal resistance at CAD 1.2585, look for further weakness toward horizontal support at CAD 1.2520 and toward CAD 1.2500 in extension. A third target is set at Nov. 16 bottom at 1.2485. Only a rebound above horizontal resistance at CAD 1.2585 would call for a rise toward Nov. 11 top at CAD 1.2605 and toward CAD 1.2630 in extension. [This piece contains the opinions of Trading Central and does not constitute personalized investment advice or form part of any invitation or inducement to buy or sell any security. The author has been prohibited by Trading Central from purchasing or otherwise directly or indirectly acquiring any direct or indirect beneficial ownership of any instruments or markets for which Trading Central or its affiliates issues recommendations. To read more, visit bit.ly/1MehCU9.] (analysts-europe@tradingcentral.com)

0811 GMT - The pound rises to its strongest against the euro since February 2020 after data showed U.K. annual CPI inflation accelerated to 4.2% in October, from 3.1% in September and above the consensus forecast in a WSJ poll of 4.0%. The data points to persistent inflationary pressures and supports the case for the Bank of England to raise interest rates in December, says Sam Cooper, vice president of market risk solutions at Silicon Valley Bank. "Sterling has welcomed the release," he says, but notes "a degree of caution" after the BOE unexpectedly left rates unchanged in November. EUR/GBP is last down 0.3% at 0.8407, having hit a low of 0.8395, according to FactSet. GBP/USD is last at 1.3439, having briefly hit a one-week high of 1.3472. (jessica.fleetham@wsj.com)

0806 GMT - BNP Paribas Asset Management closed its short position in eurozone sovereign debt because yields rose near to their target, it says. The asset manager, however, remains short in U.S. government debt which it sees as a funding leg for their equity exposure, it says. Being underweight duration is a strategic position in government bonds given the favourable economic outlook, the current low level of yields and the prospects of a normalization of monetary policies, "even if only gradually and cautiously," it says. Duration is a measure of the sensitivity of a bond to changes in interest rates.(emese.bartha@wsj.com)

0803 GMT - Singapore's goods export volumes could grow 3.1% in 2022, after an expected 8.9% rise this year, Oxford Economics says. A real-estate-led slowdown in China's growth and ongoing global supply-chain disruptions will likely to continue as obstacles to global trade, it says. The country's total export growth should be driven more by services vs. goods next year as international borders reopen, the economic research company says, forecasting a current account surplus of 18% of GDP in 2022, easing from a near-record level of 20% in 2Q 2021. (yongchang.chin@wsj.com)

0751 GMT - Germany's 0% August 2052 Bund is trading cheap on the German curve, according to JPMorgan. The 30-year Bund is trading with a benchmark roll of around 4.5 basis points, which is close to the upper end of the 30-year benchmark discount range over the past 12 months, JPM strategists Aditya Chordia and Elisabetta Ferrara say. The August 2052 Bund is trading at a yield of 0.10%, according to Tradeweb. The average yield of this Bund at the previous auction on Oct. 13 was 0.35%. (emese.bartha@wsj.com)

0752 GMT - Islamic State Central Africa Province's latest attacks in the Ugandan capital illustrate a broader deterioration in security, raising fears about the capacity of the coffee-growing nation to counter terror threats, says Ed Hobey-Hamsher, an analyst at Verisk Maplecroft. At least three people were killed and dozens injured in the attacks, claimed by Islamic State, shaking a nation where oil companies are currently implementing multibillion projects to commercialize some of Africa largest undeveloped crude oil reserves. "The coordination of three suicide attacks demonstrates greater capacity than the low-level incidents in October," he says. "Uganda's role as the leading troop contributing country to the African Union Mission in Somalia mean it will remain a highly attractive target for regional Islamist militants." (Nicholas.Bariyo@wsj.com; @Nicholasbariyo)