Bank of America Global Research discusses its expectations for this week's ECB policy meeting on Thursday.
"Following the incomplete Strategy Review, the FX market will be looking for details on forward guidance for policies this week. Announcing a higher inflation target is not relevant for markets without new policies to back it. The ECB still has to explain how they will meet the new, higher inflation target, when they have consistently failed to meet the previous, lower target for the last 10 years," BofA notes.
"We therefore expect the ECB will be taking a gradual approach of announcing policy details in the context of the Strategy Review, starting with more on forward guidance this week, but not policies yet. We remain negative on EUR, but the path will remain choppy," BofA adds.