eFXdata reports that analysts at MUFG Research offer their expectations for this week's ECB policy meeting.

"Downward pressure on the EUR could intensify ahead of this week’s ECB meeting. There will be pressure on the ECB to back up their new policy framework with policy action to boost market credibility. It would be underwhelming if the ECB just updates their forward guidance to include: i) a reference to the new symmetric 2% inflation target and ii) a signal to tolerate modest and transitory inflation overshoots when the policy rate is at the zero bound."

"Potential options on the table for policy action include: i) committing to faster PEPP purchases beyond Q3 and/or extending the likely end date of PEPP beyond Q1 2022, and/or ii) providing more reassurance that when PEPP ends it will be followed by a beefed-up version of the APP to avoid a sharper drop off in total asset purchases."