The Uganda shilling was constrained within the 3695-3715 band in yesterday’s session, with minimal and balanced activity on both the demand and supply counters.
Market chatter alludes to a range bound trade at current levels with bias towards a stronger shilling.
Investor focus now shifts to the T-bond auction for the 2yr and 5yr papers slated tomorrow, were rates are expected to remain at current levels.
Dollar trades flat against rivals
The U.S. dollar traded flat against its rivals on Monday as data showing the U.S housing market continued to stutter. The National Association of Homebuilders’ Housing Market Index showed a reading of 63, but the report noted that “builders report the market is stabilizing following the slowdown at the end of 2018and they anticipate a solid spring home buying season.”
EUR/USD rose to 1.1335 as the European Central Bank announced that the quantitative easing program had helped governing council to fulfil its price stability mandate.
The sterling slid against the dollar after U.K speaker John Berkow reportedly ruled against U.K Prime Minister Theresa May’s plan to have a third vote on her withdrawal deal after she failed to get support of DUP, the party that props up her government. Berkow said the deal must be substantially changed before there is another vote.