CITIC Securities predicts that the European Central Bank will pause its rate hike.

CITIC Securities pointed out that the short-term price changes of the Euro, Eurozone bonds, and European stocks after the ECB announced its interest rate hike decision were not significant, indicating that the market had largely already digested the expectations of this rate hike and forward guidance. The derivative market is currently pricing in the expectation of at least one more rate hike by the ECB this year, but we still believe that the ECB may hold off on further rate hikes after this one. It is expected that the ECB will pause its rate hikes, limiting the further appreciation of the Euro, with support for the US dollar index.