EUR/USD: Solid US data & Yellen balance sheet talk to support yields

Analysts at ING see the EUR/USD neutral for the week ahead, trading in a range between 1.1320 - 1.1450.

Key quotes:

"With global bond markets under pressure, all the focus next week will be on Yellen's semi-annual testimony to Congress. The June NFP release was reasonably strong, thus there is no reason for her to digress from the view of further gradual rate hikes & balance sheet reduction."

"US data should support this position. Friday sees both retail sales and CPI data released. We think core CPI could edge up to 1.8% YoY - not far from the Fed's target. It's a quiet week for EZ data and ECB speakers."