REPEAT POV: ECB LIKELY SATISFIED WITH POLICY....>

ECB: REPEAT POV: ECB LIKELY SATISFIED WITH POLICY GUIDANCE FOR NOW

-Draghi & Co aren't expected to deviate from the June meeting on either policy

instruments or the accompanying statement. With forward guidance meted out to

markets at the last meeting, inflation and growth dynamics are yet to change

sufficiently to justify any changes. The ECB may provide more clarity on their

plans to wind down APP by year-end and any comments on re-investment will be

keenly eyed.

-Markets have been trimming their net long EUR position consistently since

March. With no August ECB rate decision, Thursday's meeting could extend, or

end, this pattern over Summer.

-Hawkish risk: A more heavy emphasis on the upside risks to inflation and a

willingness to look through short-term EZ data weakness may prompt markets to

price in a rate hike 'through Summer 2019' with more confidence.

-Dovish risk: Markets may read into any explicit concern on trade tensions and

their ability to compromise economic activity as a downside risk for tighter

monpol.