The odds were against the Shilling in Tuesday’s trading session, as the home unit reversed its recent gains against the dollar.
A flurry of activity in the morning saw dollar demand tip the scale against the Shilling, where it steadied for the majority of the session to close the day 10 shillings lower.
Market chatter alludes to range-bound trading, with the USDUGX currency pair holding within the 3665-3695 farrow.
The U.S. dollar fell on Tuesday, following a plunge in Treasury yields, as weaker U.S. consumer confidence raised questions about the strength of the economy at a time when traders are betting the rapid spread of Covid19 may trigger a material change to the Fed’s outlook on the economy, forcing a flurry of rate cuts.
The United States 10-Year yield fell to a record low of 1.307% in the wake of growing worries the potential impact on global growth from Covid-19 will be worse than expected, forcing the Fed to act in April, June and July.
The euro regained some poise in yesterday’s trade having clocked a high of $1.0890 intraday, though closed at $1.0863.
The pair may challenge and possibly break above Tuesday’s high of 1.0890 if the US yields continue to lose altitude on coronavirus scare.
Meanwhile, the pound rose to $1.3005 amid speculations that the fed could cut interest rates sooner rather than later to offset any negative impact from the coronavirus pandemic. Today, the key focus will be on the EU’s mandate for the key trade talks and future relationship.