Euro chalks gain after volatile trade; UK pound follows suit
Commodities continue to trade cautiously
record in October as the fiscal crisis and tougher austerity measures deepened the region’s economic crisis. The unemployment increased to 11.7% from 11.6% in September, marking its highest level since the data series started in 1995. The jobless report showed that 18.7 million people were unemployed in the Euro area in October, up 173,000 from the previous month. At 26.2%, Spain had the highest overall jobless rate. Portugal’s unemployment rate was 16.3%, while Ireland reported a jobless rate of 14.7%. Disappointing German Retail Sales German Retail Sales Indicator was down 2.8% on the month in real terms and 0.8% on an annual basis, the data came well below market expectation of a drop of 0.2% on the month and a gain of 1.2% on the year. The worse than expected retail sales data dented hopes that private consumption could compensate for the impact of the Eurozone crisis on export. A New Bank of England Governor The Bank of Canada Governor Mark Carney will take over from Sir Mervyn King next June. He was praised for his “pragmatic” response to the financial crisis and global recession, with Canada one of the few leading nations to escape without a bank bailout. He is considered more “hawkish” than Sir Mervyn after raising interest rates in Canada to offset a housing bubble. Japan October Retail Sales Fall The Japanese retail sales fell 1.2% in October from a year earlier, adding to mounting evidence that the economy has fallen into a mild recession. The fall compared with a median estimate for a 0.7% annual decline, according to the latest economic polls. Gold Losses steam Gold had its biggest weekly drop in more than four months on concern that U.S. lawmakers may not be capable to reach a settlement in talks aimed at avoiding tax increases and budget cuts known as the fiscal cliff. Gold traded as low as USD 1,705.64 an ounce before recovering slightly and closing the week at 1,715.19 as signs of global economic slowdown and fears of US recession dented the gold’s inflation hedge appeal. Oil Rises Light crude oil prices rose 84 cents to settle at USD 88.91 a barrel, bringing prices up 3.1% for the month of November. The oil rally was boosted by optimism that US lawmakers would reach a deal on the budget and by increasing tensions in the Middle East that might cause disruption to oil supplies. Kuwaiti Dinar at 0.28165 The USDKWD opened at 0.28165 on Sunday morning.