The European Central Bank (ECB) has announced that they will hold an ad-hoc Governing Council meeting in order to discuss the current market conditions. This will include the somewhat disorderly price action across the global bond market. The meeting will take place at 10:00 BST, however, it is not known whether a statement would be released. In reaction to the initial headline, Euro rallied to just under 1.05, while Bund-BTP spreads tightened aggressively.
However, sources imply that the ECB will examine PEPP bond reinvestment and maybe tilt PEPP bond reinvestment to help smaller economies at the time of publication. As the announcement is a restatement of existing forward guidance, it appears to be a small shock, with the Euro backing away from daily highs.
As a result, if the ECB simply states that it is actively watching markets rather than unveiling any new instruments, the EUR/USD could backtrack its initial gains, returning to the 1.04 level.