More wait and see by ECB?

The ECB is likely to keep its powder dry at the meeting on Thursday, but to retain a dovish tone and reiterate that it can adjust the size, duration and composition of the QE programme. 

From a market perspective, the meeting should not provide further clarity but is likely to be seen as an 'intermediate meeting' ahead of the December meeting, when the ECB will release updated projections. 

"Only one out of 43 analysts in a Bloomberg survey expects the ECB to step up its QE programme in October whereas 51% expect it in December. Very low market-based inflation expectations still put strong pressure on the ECB and the door for more easing is likely to be kept open, but Draghi might not be signalling that further deposit rate cuts are on the table", says Danske Bank.

In fixed income markets, a deposit rate cut is priced in with more than a 50% probability, the ECB is more likely to extend or increase the monthly QE purchases. Hence, the pricing might be too aggressive.