China's currency could be devalued and said that it was inevitable months began to be discussed in advance. It must be prepared to let the country's economy. As is known, reduction of price deflation is falling. Although this might sound pleasant to the ear is a great example of the historical experiences of hazard events it could be shown to halt production of the 1929 Great Depression era.
The risk of deflation in the national economy, production is affected as follows: Price decreases, increases the value of money but in the psychology of deflation environment is as follows: the consumer does not purchase prices reduce Seeing consumption is sustained fall since prices thinkers will fall further and the economy begins to slow trading scarcity due to the production decrease, employment decrease, national income falls begin to investors, traders, companies are worrying too could fall in price by acting with the same thoughts and they are not included in investment or take any action.
Chinese Economy and Fed Interest Rate Increase
Fibonacci %236 Level Now : 6.15 Now : FX_IDC:USDCNY
Fibonacci % 382 Level Now : 8.32 Now : FX_IDC:EURUSD
Fibonacci %021 Level Now : 6.30 Now : INDEX:DXY