EUR/USD: rise of euro-dollar may be limited by German rates and US data (ING)

ING believes that the EUR/USD may have trouble climbing higher on the Forex in the short term.

"German 10-year rates are testing this year's highs in the 0.15/0.50% range, and a bullish break could make noise and push the EUR upward.

Our bond team thinks this range will hold until the 20 July ECB meeting, thus limiting the EUR/USD increase on the forex.

After three months of disappointing data, the United States could see a turning point this week. The ISM was stronger than expected on Monday, and after this 4 July public holiday we could see a series of positive data, ending with the important NFP report on Friday.

This could push the markets to question their expectations of only 30% for a September rate hike, and support the USD."