A political crisis in Portugal that has sent the country's bond yields soaring to as high as 8 percent this week puts European Central Bank (ECB) President Mario Draghi back in the hot seat when the central bank meets on Thursday.
It was just a year ago that the ECB chief was forced to pledge to do "whatever it takes" to save the euro zone from collapse as a spike in Spain's borrowing costs sparked fears that the currency bloc's fourth largest economy would be forced it to seek a sovereign bailout.
Jittery investors may be looking to Draghi once more to soothe concerns that Portugal's political problems could harm the euro zone economy and stability in peripheral bond markets.
"Draghi is going to be walking out on thin ice. If he fails to hint at further easing or at least negative interest rates as a possibility, we could see the euro and European markets take a bit of a hit," David Rodriguez, quantitative strategist at FXCM, an online forex trading broker, told CNBC.
Last month, the ECB chief disappointed markets after he failed to offer new monetary stimulus measures, saying the euro zone economy will return to growth by the end of the year. Some had expected the central bank to cut rates from the current record low of 0.5 percent.