The sovereign bonds issued by Eurozone governments witnessed growth in the past couple of weeks. But it has obviously raised concern in the ECB’s Governing Council.

This suggests that the European Central Bank probably will take an action in the coming meeting on Thursday. Most likely, there will be no major reduction in the monetary policy, for example, a cut in interest rates. However, a judgment to further bond-buying purchases is feasible but this move could be negative for EUR/USD.

Moreover, ECB council members, Italy’s Fabio Panetta stated last week that the recent rise in the yield curve is undesirable and should be avoided. “We should not hesitate to increase the volume of purchases and to spend the entire PEPP envelope or more if needed,” he mentioned this, referring to the ECB’s Pandemic Emergency Purchase Program.

Evidently, a verdict to boost debt purchases most possibly will be negative for EUR/USD. However, the Euro might strengthen if the above-mentioned action will not be implemented at the ECB meeting on Thursday.