ECB likely to ease policy further before year end?

US might not be a direct immune to a likely China slowdown. In line with market expectations, it is now seen that the Fed delaying its rate liftoff until March 2016, due in part to risks from China. 

The delay in the Fed's policy normalization has undermined the USD's momentum and re-enforced EUR/USD range trading, leading to a 'vicious circle' of low macro conviction, exacerbated by declining liquidity, market direction and investor engagement.

The above have led to material trade-weighted EUR appreciation, which in combination with global disinflationary pressures including a sharp decline in commodity prices, have increased the already considerable downside risks to euro area inflation. 

"There has been a further sharp drop in market-based measures of euro area inflation expectations. These developments have tightened financial conditions and lead us to expect the ECB to ease policy further before year end", says Barclays