Barclays says that ECB President Mario.....>

ECB VIEW: Barclays says that ECB President Mario Draghi's speech "avoided

mentioning the role of monetary policies, and in particular did not give any

insight on upcoming monetary policy decisions. In particular, he did not comment

on the current upward trend in the EUR", which helped push Euro to a 2.5-year

high vs US Dollar.

- Barclays say that "all eyes will be on" Sep 7 ECB meeting and expect the GC to

hold an "in-depth discussion" on monetary policy stimulus. Expect ECB to change

forward guidance on QE, which "would open the door to a time extension of QE

beyond Dec but at a lower monthly pace, and possibly an inflexion of forward

guidance on rates, which would enable a small increase in the depo rate during

2018".

- ECB to have to "take stock" of rise in Euro and think latest forecasts will

show a "small downward revision to inflation, but possibly a small upward

revision to GDP growth.