November 2021 Market Wrap

Home > Monthly Market Updates > November 2021 Market Wrap

The Dollar extended its rally in November, buoyed by a hawkish Fed, as Jerome Powell said policymakers could discuss accelerating the tapering of monthly bond purchases in December to battle escalating inflation pressures. U.S. inflation hit a three-decade high in October (CPI: 6.2%), exacerbated by persistent supply shortages and soaring commodity prices.

In stark contrast to the Fed, ECB reaffirmed its dovish stance, holding the view that higher inflation is temporary and will fade throughout 2022. However, with the Eurozone inflation rate hitting a record 4.9% for November, the highest in 25 years amid spikes in energy costs, it prompted questions on the ECB’s next steps as the economy juggles with fresh Covid-induced restrictions. Euro declined to its lowest level against the greenback since July 2020.

Commodity currencies dipped in November as the emergence of the Omicron coronavirus variant sapped risk appetite and sparked market selloffs. The RBNZ lifted interest rates by 25 basis points to 0.75%, the second rate hike this year, as rising inflationary pressures and easing of coronavirus restrictions supported economic growth. Crude oil retreated from October’s peak to trade around $65 per barrel while Gold traded lower as a hawkish Fed and prospects of higher interest rates dampened the bullion’s appeal.

More Posts

trading robot

How Do Forex Trading Robots Work?

Compared to other investment instruments, forex trading has become widely popular in the past decade with lower barriers to entry and high potential returns on

day trading vs swing trading

Day Trading vs Swing Trading

Day trading and swing trading are two often confused terms representing two short-term strategies across different time periods. In this article, we will be comparing

day trade

A Beginner’s Guide to Day Trading

Day trading has recently seen emerging interest since the COVID-19 lockdowns due to its reputation for speedier returns. That said, its nuances and characteristics are