Greek situation remains volatile with implementation risks

So while we expect the ECB to remain in wait-and-see mode while the economy remains largely on track, the Governing Council will remain on the lookout for any risks that may throw the recovery off its forecasted trajectory. Draghi will probably reiterate that recent data is broadly in line with the ECB's forecasts, and contingent on full implementation of the PSPP signaling that the ECB does not have any intention to change its current game plan.

Although the markets have been relatively sanguine throughout the latest episode in the Greek saga, the Greek situation is a volatile one as implementation risks remain present even after the Greek parliament approves of this new accord. Therefore, Draghi is expected to signal that the ECB remains vigilant and stands ready to act in case signs of contagion start to appear in other peripheral countries.

"The ECB still has various tools at its disposal to combat any adverse developments, but the increased verbal intervention would be the ECB's first line of defense. If the central bank is ultimately forced to act, the OMT programme or an adjusted PSPP seem as feasible tools", says Rabobank.

However, given the lack of PSPP-frontloading in recent weeks, President Draghi may have to explain that these two tools are indeed still effective monetary policy instruments, and that there will be sufficient assets for the bank to ramp up its purchases when necessary.