European economic leaders have called for “discipline” in currency markets as the US dollar continues its slide against the Euro, contributing to pricier gold and more expensive oil. European Central Bank head Jean-Claude Trichet said that “excessive volatility was bad for economic development”. The Euro has gained 20 percent against the dollar since earlier this year, which threatens to undermine Europe’s economic recovery, by making its exports more expensive.

Oil is trading at $80 a barrel in New York, reflecting increased optimism about the state of the world economy, but also the weak dollar, and moved sharply beyond its $65 – 75 per barrel trading range it has maintained since July. Gold stayed above $1060 an ounce in trading 20 October and looks set to set new record prices, also on a weaker dollar, traders say. Bloomberg, Reuters, Wall Street Journal

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