0803 GMT - The euro could struggle to rise against the dollar as it looks modestly overvalued, ING's Francesco Pesole says in a note. ING's short-term fair model suggests the euro versus the dollar is overvalued by about 0.5%-1.0%, he says. The euro needs a favorable shift in short-term rate differentials to take another leap higher, driven by a repricing of expectations for U.S. interest-rate rises, he says. "Our baseline for this week is for euro-dollar to edge back below $1.150 on a more supported dollar, but unless U.S. jobs figures come in particularly hot, we don't see a return to $1.140 in the near term." U.S. nonfarm payrolls data are due Friday. The euro trades flat at $1.1511.
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