The movement of the shilling against the U.S. dollar was constrained within a narrow band in Monday’s trading session.
It was a dull start to the new week as the market saw limited activity across the various counters, with key players remaining on the sidelines. The USDUGX pair hardly changed as a result.
The currency pair is likely to continue trading within recent ranges albeit with a bullish tinge as activity on the foreign currency supply counter gradually picks up.
The dollar climbed Monday, on data showing manufacturing activity expanded in January for the first time in six months, while a slump in the pound also boosted the greenback amid fears the U.K and European Union could clash on trade.
The ISM manufacturing index for January showed an uptick to 50.9, beating expectations of 48.5. A reading above 50 in the ISM index indicates an expansion in manufacturing, which accounts for about 12% of the U.S. economy.
The euro fell to $1.063, shrugging off data showing stronger-than-expected manufacturing activity in the Eurozone.
GBP/USD fell to $1.2994 as the U.K. and EU expressed opposing views on a future relationship, raising fears Britain risks leaving the economic bloc at the end of the transition period, Dec. 31, without a deal.