ANZ Research previews this week's ECB September policy decision.

"The ECB meets this week for its policy decision, alongside updated staff forecasts. A 25bp rate hike is fully priced, with recent ECB comments suggesting this week’s decision is largely a done deal. ECB member, Gabriel Makhlouf, noted in a 2 September interview that the decision “will not be a surprise”, so we do not expect the rate decision itself to be a major catalyst for the EUR. The focus will instead be on the ECB’s assessment of the inflation outlook and guidance on the policy path beyond September," ANZ notes.

"Against this backdrop, if the ECB maintains a neutral, datadependent tone and refrains from materially upgrading its inflation outlook, markets may scale back some of the additional tightening currently priced beyond September. This could create tactical downside pressure on the EUR in the near term. Overall, we remain constructive on EUR/USD and would view any ECB-induced weakness as an opportunity to add long positions," ANZ adds.