The European Central Bank looks ready to reform monetary policy across Europe but not in time to implement these changes before Thursday.As we expect to see no change to interest rates and deposit rates on January 25, we will be keeping attention on ECB President Mario Draghi and how he communicates his plans. There will undoubtedly be pressure on him to answer questions and give some forward guidance to investors. Traders will be hunting for any indications as to whether the ECB will converge with our expectations of more substantial announcements in March.Many investors believe that the ECB will decide to tighten the European monetary policy within 2018. The judgement of when to implement the new plans will be much more difficult to estimate due to the reduced premiums on euro puts in the last week and weaker than expected inflation rates which confirms that Mario Draghi’s job is not over yet.The Euro reached its highest point in over three years earlier this month. Strongly induced by the minutes released regarding the December 14 policy meeting, which were perceived as largely “hawkish” by many investors. The Euro has exhibited a 3% rise against the Dollar, as at the time of writing, originating from the release of the minutes around midday on January 11.Contrary to this, some traders are not expressing the same level of hawkish confidence for the future due to the currency’s recent acceleration. The premium on call options betting has decreased from a recent high last week as investors approach the risk that President Mario Draghi could join a chorus of dovish policymakers. There is still the possibility that failure to bring about the dovish hints that the Euro requires could see bullish bets inundate the market again.Steps towards a more restrictive set of policies have already began with the ECB announcing in October that it would be reducing bond purchases by halve from €60 billion to €30 billion a month. Although we fully expect the ECB to continue its bond purchasing for another term, we forecast a decline in the value of purchases to continue, with Draghi expected to announce a reduction to €15 billion a month.Nonetheless, Draghi’s promise to keep rates “at their present levels for an extended period of time” is expected stand strong. We do not expect any rates to increase within the announcements on January 25, but we do foresee an announcement in March or June which will indicate when the inevitable increases will occur. Longer-term we are projecting rate increases for all three main categories before the end of 2019.