Binance News
--
Forex Traders Weigh Potential Stock Market Correction and December Rate Cut
According to BlockBeats, Reuters market analyst Jeremy Boulton suggests that forex traders are contemplating whether the long-anticipated stock market correction has commenced. A deeper decline in the stock market could increase the likelihood of a rate cut in December. Currently, the market estimates a 52% probability of a 25 basis point rate cut by the Federal Reserve in December.
The recent profit-taking is primarily driven by investor concerns that a rate cut may not occur in December. It is important to note that this is a profit-taking scenario rather than a forced liquidation of losing positions.
Traders typically re-establish profitable positions after adjustments, and the current correction is offering more attractive entry levels. If a rate cut occurs sooner than expected, it could provide traders with a reason to act.
The recent profit-taking is primarily driven by investor concerns that a rate cut may not occur in December. It is important to note that this is a profit-taking scenario rather than a forced liquidation of losing positions.
Traders typically re-establish profitable positions after adjustments, and the current correction is offering more attractive entry levels. If a rate cut occurs sooner than expected, it could provide traders with a reason to act.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.