ECB takes centre stage this week as markets anticipate further monetary easing

The ECB will take centre stage this week as markets anticipate further monetary easing in the months ahead. More monetary easing is expected before year-end. It is believed that the details and magnitude matter for the price action of the EUR, as an extension and increase in the QE program would probably have less of an effect than an outright cut in the deposit rate. 

It is just a matter of time until the ECB decides to drive EURUSD lower. Not only do the global growth and commodity price outlooks continue to have downsides risks, but inflation in the eurozone is not expected to reach the ECB target during the established timeframe when financial conditions have tightened. 

"We believe that amid a lack of policy options, the ECB will step in in the months to come to try to fulfill its inflation mandate", says Barclays.