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BANK OF ENGLAND RAISED MARKET RATES IN 2021

International, political, and economic events always affect the market price level. Let’s review the news that influenced financial markets in December and will have an effect on January 2022.

XAUUSD sank to 1,752.41, hitting a two-month low. In the second half of December, the volatility reduced due to the Christmas holidays in Western countries. Gold took advantage of the thin market, growing to 1,829.06 by the end of the year.

However, on a year-on-year basis, XAUUSD is down by 6.5%. Global economic recovery and the future consistent rate hikes will lead the yellow metal to further decline in 2022.

EURUSD began to weaken, although it traded within a tight range in December. The pair closed the month at 1.13676. The U.S. dollar gained almost 7% in 2021, making the most significant rise in six years. Over the year, the eurozone currency has fallen by the same range.

GBPUSD has outperformed major currencies this month and finished it at 1.35248. On a year-on-year basis, the pair ended 2021 down by around 1%.

November’s inflation reached 5%, and the central bank set the signal of leaving the low rates. The Canadian dollar strengthened, and USDCAD ended 2021 at 1.26325. The pair was flat for the year.

BTCUSD continued its decline. Concerns about new regulation came to the market, as the Governor of the Bank of England warned banks to be extra cautious with cryptocurrencies. Russia’s central bank later banned cryptocurrencies in the country.

Bitcoin ended the month at 46,298.10. Overall, the total BTCUSD gain in 2021 was 71%.

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