The shilling fluttered between gains and losses in yesterday’s trading, ending the day unchanged from the previous close.
The local currency started the day on a solid footing registering some gains against the greenback, buoyed by easing demand.
Buyers, however, took back control of the market later in the afternoon, pushing the USDUGX pair back
north.
In today’s session, market chatter alludes to range-bound trading as demand and supply forces contest for dominance.
Worries about a slowing U.S. economy and the possibility of further interest rate cuts in the wake of weak U.S. manufacturing data kept the dollar pinned down, as investors sought safety elsewhere.
Data released overnight showed the U.S. manufacturing sector contracted in September to its weakest level in more than a decade and sent the greenback sharply lower from a more than two-year high.
Sterling rose modestly against the greenback on stronger-than-expected manufacturing activity data that helped to prevent fresh losses, but the main focus remains Brexit headlines.
If the EU offers concessions on the Irish backstop, the GBP/USD pair will rise higher.
The EUR/USD pair gained in the previous session, trading above 1.0900 levels on account of a weaker dollar.
The pair shrugged a September survey, showing Eurozone manufacturing activity had tapered and the preliminary core Inflation figure for the bloc was muted at 1.0% year-on-year.
