Forexlive Americas FX news wrap: US dollar jumps on strong ADP and ISM services

<ul><li><a href="https://www.forexlive.com/news/us-june-adp-employment-497k-vs-228k-expected-20230706/">US June ADP employment +497K vs +228K expected</a></li><li><a href="https://www.forexlive.com/news/us-june-ism-services-539-vs-510-expected-20230706/">US June ISM services 53.9 vs 51.0 expected</a></li><li><a href="https://www.forexlive.com/news/us-jolts-job-openings-for-may-9824m-vs-9935m-est-20230706/">US JOLTS job openings for May 9.824M vs 9.935M est</a></li><li><a href="https://www.forexlive.com/news/by-the-numbers-june-non-farm-payrolls-preview-15-in-a-row-20230706/">By the numbers: June non-farm payrolls preview. 15 in a row?</a></li><li><a href="https://www.forexlive.com/centralbank/atlanta-fed-gdpnow-q2-estimate-rises-to-21-from-19-last-20230706/">Atlanta Fed GDPNow Q2 estimate rises to 2.1% from 1.9% last</a></li><li><a href="https://www.forexlive.com/news/us-june-sp-global-final-services-pmi-544-vs-541-prelim-20230706/">US June S&amp;P Global final services PMI 54.4 vs 54.1 prelim</a></li><li><a href="https://www.forexlive.com/centralbank/feds-logan-says-would-have-been-ok-with-a-june-rate-hike-20230706/">Fed's Logan says would have been ok with a June rate hike</a></li><li><a href="https://www.forexlive.com/news/us-may-international-trade-balance-690b-vs-690b-expected-20230706/">US May international trade balance -69.0B vs -69.0B expected</a></li><li><a href="https://www.forexlive.com/news/us-initial-jobless-claims-248k-versus-245k-estimate-20230706/">US initial jobless claims 248K versus 245K estimate</a></li><li><a href="https://www.forexlive.com/news/canada-may-trade-balance-344b-vs-194b-expected-20230706/">Canada May trade balance -3.44B vs +1.94B expected</a></li></ul><p>Markets:</p><ul><li>WTI crude oil up 7-cents to $71.86</li><li>US 10-year yields up 9.6 bps to 4.04%</li><li>EUR leads, CAD lags</li><li>Gold down $7 to $1909</li><li>S&amp;P 500 down 0.8%</li></ul><p>The US economy continues to run hot. The ADP number was shockingly strong, setting up what could be a 15th consecutive beat on non-farm payrolls tomorrow. That was followed up by a strong ISM services index with some hints at inflation re-acceleration.</p><p>The bond market crumbled initially, with 2-year yields hitting 5.12%, which breaks the March high. That didn't last though as they closed just under 5% in a sign that the market is either skeptical or cautious ahead of NFP and next week's CPI data.</p><p>The dollar initially jumped but later gave back gains against the euro and pound as they showed some impressive fight-back. The commodity currencies weren't so lucky as the offered meagre bounces in the 20-pip range and, in the case of CAD, nothing at all.</p><p>USD/CAD spiked up to 144.65 but quickly backed off a challenge of the figure and down to 144.11. It was at 143.65 before the ADP data.</p><p>Stocks were beaten up on the hot data on worries about hikes but there was some nibbling mid-day to mitigate the losses as the market struggles with the axis of a solid economy but further potential hikes.</p>

This article was written by Adam Button at www.forexlive.com.