German June orders jumped 4.5% m/m, which was the most in two years. The breakdown showed domestic orders up 0.2% m/m and foreign orders 8.3% m/m., with orders from other eurozone countries rising a staggering 13.2% m/m. The June rise came after a 4.4% m/m increase in May and orders rose 6.1% q/q in Q2, after falling 14.4% q/q in the first quarter. With orders leading overall GDP growth by around a quarter data set the stage for a rebound in production and GDP in the third quarter of the year. The sharp rebound also supports our view that the ECB will keep rates steady today and in coming months, but could hike rates quicker than many currently expect, possibly as early as Q1 next year.