The report says that the doves at the ECB are preparing to fight for a rate cut next month after weighing up the softer economic data as of late. The sources say that the poor PMI data and a slowdown in wages are stirring up confidence among those who are in favour of lower rates.
However, the report notes that any push to cut rates in October will be met with strong opposition from the hawks. Some sources are hinting that if there is a compromise, it will see no rate change next month but the ECB is likely to drop a strong hint on a move in December if the data doesn't improve.
If so, that will be a pivot away from their existing stance of taking things "meeting by meeting".
The euro is down to the lows of the day now with EUR/USD dropping from 1.1150 to 1.1130 currently.