TD Research discusses its expectations for tomorrow's ECB policy decision.

"The outcome is near a coin toss, but ultimately we sit (just) on the 50bps hike side for September's decision. Both outcomes are likely to share the same broad narrative and end-point; the question is more about a strategy of 75/50/25 vs 50/50/50 hikes for the rest of 2022's policy decisions," TD notes.

"EUR risks skew to a larger selloff on a dovish outcome. Markets are pricing in around 65bp for the meeting, so a 75bp hike could mildly support EUR in the short-term. Still, the energy outlook is key and points to fading EURUSD rallies, eying a 0.96 level in Q4," TD adds.

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EURUSD daily Sept 7