The European Central Bank (ECB) will meet in Frankfurt on Thursday to discuss the sovereign debt crisis in the eurozone.

The bank's president Mario Draghi faces intense pressure from investors, European leaders and even the United States to deliver on his pledge to do whatever it takes to save the euro.

He is expected to unveil a two-pronged approach to battle the difficulties facing the single currency.

There is speculation that the ECB will take action to bring down Spain's cost of borrowing.

The bank has little margin for error to maintain its credibility and avoid bond yields climbing in the indebted countries on the periphery of the eurozone.

The market's faith in Draghi will be tested before he gives his post-meeting press conference, as there will be a Spanish bond auction which could see debt costs rise.