*In the US, the ADP Nonfarm Employment Change for June significantly exceeded expectations, coming in at 497,000 compared to the anticipated 228,000. Following the release of this data, there were rapid increases in US 10-year and 2-year yields. US 10-year yields reached levels of 4.05%, while 2-year yields climbed to 5.11%, the highest level since 2007. Additionally, initial jobless claims came in close to expectations at 248,000, just shy of the estimated 245,000.

Another data release from the US was the trade balance for May, which stood at a deficit of $69 billion as anticipated. Furthermore, the ISM Non-Manufacturing PMI for the previous month came in higher at 53.9, surpassing the previous month’s reading of 50.3. As a result, we observed a return towards the support level of 1.0840 in the EUR/USD currency pair, while there was a decline in the price of gold towards $1900 per ounce.

*In Germany, factory orders for May exhibited a significant increase, surpassing the expectation of a 1.2% rise with a growth rate of 6.4%. In the UK, the construction PMI for June was expected to decline from 51.6 to 51.0 but instead experienced a sharper drop to 48.9, falling below the threshold level of 50. In the Eurozone, retail sales remained unchanged in May but showed a decrease of 2.9% compared to the same month of the previous year. In Canada, the trade balance for May was anticipated to have a surplus of 1.15 billion Canadian dollars but instead recorded a deficit of 3.44 billion Canadian dollars. The Governor of the Bank of England, Andrew Bailey, stated that he could not provide a specific date for when interest rates would begin to decrease.

*Logan, a spokesperson from the Federal Reserve, expressed concerns about whether inflation would decline rapidly enough and mentioned that the process of economic rebalancing has been slower than expected. Referring to the delayed impact of previous Fed interest rate decisions, he stated that a rate hike in June would be beneficial.