MUFG Research discusses its expectations for next week's ECB policy meeting.
"We do not expect the ECB to alter the guidance on PEPP next week. The higher pace is merely the pace required to use the full EUR 1.85trn QE envelope and hence is not that aggressive. Coinciding with the Fed by slowing the pace in December makes more sense," MUFG notes.
"We see next week as the first real opportunity for the ECB to illustrate the implications of the new monetary policy framework and we expect the ECB to take advantage of that which should slow upside moves in EUR/USD from here," MUFG adds.