The European Central Bank (ECB) is likely to hold off on making any announcements on its stimulus program when it meets this week, instead opting to push new developments to October in the face of a strong euro.
President Mario Draghi said at the last ECB press conference that the Governing Council would discuss the future of its QE (quantitative easing) program in "the fall" - prompting many to speculate that he could detail a reduction of stimulus in September.
However, with the fall technically only starting only at the end of September, these market participants may have gotten ahead of themselves.
"The stronger euro could lead to such a heated debate that the ECB could postpone fall until the Indian summer period in late October," said Carsten Brzeski, chief economist for Germany and Austria at ING Diba, in a research note.
"Either way, the big question for this week's meeting is whether Draghi will shed some light on the ECB's game plan for tapering," he added.