The volatility was present in a busy day by the activity of the central banks, which began in Australia and Japan and precedes the meeting to be held by the Federal Reserve next week.
“The market is very activated and sensitive to concerns about inflation and this notion that central banks are lagging.”said Mazen Issa, senior currency strategist at TD Securities.
Currency movements picked up on Wednesday, when the Bank of Canada issued restrictive comments. One of the factors that increased volatility was the proximity of the end of the month, as according to Issa, many investment managers rebalance their portfolios.
Before Lagarde spoke at a press conference, the euro moved little, since, as expected, the ECB kept its monetary policy unchanged, reaffirming its plan to continue buying bonds and not touch the interest rates in the next years.
However, some believe that Lagarde’s comments were not as forceful in affirming the ECB’s dovish stance as the market expected.
The Bank of Japan stuck to its cautious stance in their meeting and the yen showed no reaction. The dollar advanced about 0.4% against its Japanese pair, at 113.38 yen.
A US Government report on Gross Domestic Product in the third quarter did not have an immediate impact on the dollar. The report was expected to be weak, but it didn’t hit the greenback too much because there was stronger recent economic data. In cryptocurrencies, bitcoin advanced 4% to $ 61,031.
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