What to Watch for in European Central Bank Decision

What recent change in market positioning is highlighted in the first section?

• Increase in long euro positions

• Reduction of short euro positions

• Increase in short euro positions

• Reduction of long euro positions

What is the consensus expectation for the ECB's asset purchase program?

• €50 billion per month

• €100 billion per month

• €80 billion per month

• €60 billion per month

What is one of the proposed solutions to address the bond market scarcity issue?

• Increasing the asset purchase amount

• Raising the cap on individual securities

• Lowering the deposit rate

• Reducing the asset purchase amount

How does a steeper yield curve affect the European financial system?

• It increases pressure on financials

• It decreases inflation expectations

• It alleviates pressure on financials

• It has no effect on financials

What is the relationship between the 2/5 yield curve and the euro-dollar exchange rate?

• Inverse correlation

• No correlation

• Positive correlation

• Negative correlation