ECB to maintain PEEP, EUR/USD seen weaker - Morgan Stanley

FXStreet reports that analysts at Morgan Stanley discuss what they expect from the European Central Bank's (ECB) monetary policy decision and what’s in store for the euro.

"We expect the September ECB meeting to maintain the current PEPP purchase pace. We then expect an active autumn debate on QE after PEPP, leading to PEPP wind up on schedule in return for a larger, more flexible APP."

"In FX, we remain bearish on EUR/USD into Q4 as a dovish ECB contrasting with a hawkish Fed pushes Eurozone-US real yield differentials lower.”