The local unit began the week as it had closed the previous one trading within confined ranges against the U.S. dollar.
In a rather quiet day, the local unit held steady versus the greenback on the back of matching flows on both the demand and supply counters, living the USDUGX currency pair unchanged for a second consecutive session.
Although an improvement in market activity this coming week could cause some movement in the currency pair, we still see it holding within the 3660-3690 range.
The U.S. dollar was slightly higher amid trade concerns after a Chinese delegation ended its U.S. trip early. Both sides said the talks were constructive, but neither gave any details about what was discussed.
Chinese officials were expected to visit various farming regions but announced on Friday that they were returning home earlier than expected, fueling speculation over trade uncertainty.
Meanwhile, sterling stumbled after the European Union’s Brexit negotiator said it was unlikely a Brexit deal would be made as long as U.K. Prime Minister Boris Johnson insisted the Irish backstop deal be dropped.
The euro was weaker on Monday after data showed that Germany’s private sector shrank for the first time in more than six years, raising concerns over a deepening recession in the euro zone’s biggest economy.