In a research note published this morning, the analysts mention that the Philadelphia Fed and Empire manufacturing surveys suggest that there is a real possibility of the ISM index falling below 50. This, along with the pessimism in the market due to the sub-prime mortgage crisis, would exert pressure on the US Fed to cut rates in order to stimulate growth, the analysts say. The Fed funds futures have already priced in two rate cuts in 2H07, ING Financial Markets adds. With the ECB raising rates, any rate cuts in the US would lead to a stronger EUR/USD in the three-to-six months timeframe, according to the analysts.