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.