Any material change to the strength of certain currencies - especially if that change is a major world currencies like the U.S. $ this - certainly will have an impact on the currency, other currencies around the world.
Bank of Japan for example, before the Fed lowered interest rates just to stay already BOJ rate of 0.3%. Then offset what is done by the Fed, the BOJ will almost certainly also will cut rates close to 0 (zero) percent.
Similarly, China whose economy is highly sensitive to changes in other currencies, they must also be immediately respond to what happens in America through various mechanisms that end is to devalue its currency, either directly or indirectly.
That might be a little slow reaction is the European Central Bank (ECB) because they have to deal with the many countries who are members in it.
The point is, as concluded by David Owen - Chief Economist at Dresdner Kleinwort - London "Central banks around the world will push interest rates near zero and the need to consider other ways in an effort to move the economy, financial crisis still continues and the recession will still be worse" .
What does this all at the price of gold or Dinar?,
Because in general the price of gold moves opposite the power of currencies, after going through the stages of crisis as it had previously written, then the impulse rising world gold prices will be far greater than the opposite impulse.
This means could be in the short term gold price fluctuates with declining trend, but the medium-term fluctuations in length with a rising trend will be more dominant.Allaah knows best.
Bank of Japan for example, before the Fed lowered interest rates just to stay already BOJ rate of 0.3%. Then offset what is done by the Fed, the BOJ will almost certainly also will cut rates close to 0 (zero) percent.
Similarly, China whose economy is highly sensitive to changes in other currencies, they must also be immediately respond to what happens in America through various mechanisms that end is to devalue its currency, either directly or indirectly.
That might be a little slow reaction is the European Central Bank (ECB) because they have to deal with the many countries who are members in it.
The point is, as concluded by David Owen - Chief Economist at Dresdner Kleinwort - London "Central banks around the world will push interest rates near zero and the need to consider other ways in an effort to move the economy, financial crisis still continues and the recession will still be worse" .
What does this all at the price of gold or Dinar?,
Because in general the price of gold moves opposite the power of currencies, after going through the stages of crisis as it had previously written, then the impulse rising world gold prices will be far greater than the opposite impulse.
This means could be in the short term gold price fluctuates with declining trend, but the medium-term fluctuations in length with a rising trend will be more dominant.Allaah knows best.
