According to Jinshi Data, ING expects the European Central Bank to cut interest rates at this week's meeting. However, interest rate strategists Tukel and Schroeder said that the European Central Bank may also choose to keep interest rates unchanged because the fight against inflation is not over yet.

Data showed that the market is pricing in a 97% chance of a 25 basis point rate cut on Thursday, so a pause would come as a surprise. Strategists noted that the market is unprepared for such a disappointment, which could trigger a broader risk-off mode.

If interest rates remain unchanged, the market could see significant volatility.