China’s President acknowledged today that China and the global economy may need to accept the new normal where China will grow much slower than it has in the past. This will eventually have a bigger impact than most anticipate and I think there will be a rather big shift in asset allocation which will also impact the forex market. The economic slowdown will have a bigger impact on commodity currencies than others, but forex traders should be prepared for a ripple effect. The main problem most forex traders will face is not knowing when this even will take place.
I think it is alarming situation for Chinese Forex traders and they should prepare themselves for this upcoming crises for their trade.