The shilling lost ground against its US counterpart in yesterday’s choppy trade on account of a pickup in demand.
The activity was heavy on-demand counter while foreign currency inflows dried up, pushing the USDUGX pair higher to the 3660-3680 band.
Looking ahead, we see the home unit trading within the current ranges, albeit with a bearish bias should the dollar appetite experienced yesterday persist.
The return of risk aversion to the financial markets on Tuesday has prompted more gains for the U.S. dollar, amid concerns about the extent of the damage caused by the coronavirus in China.
The Cable traded in a 10-pip choppy range between 1.2995 and 1.3005 as traders await on the upcoming UK Consumer Price Index (CPI) data, as the multi-year low British Unemployment rate closed doors for the BOE’s rate cut.
The yield curve between U.S. three-month bills and 10- year notes inverted overnight, a bearish economic signal, and German investor confidence slumped as its economy stagnates, sending the euro cheaper than $1.08 for the first time since 2017.