A persistent lack of dollar demand continued to boost the performance of the shilling against the dollar on Wednesday.
Markets

Pound leaps again as Barnier stokes Brexit deal hopes

A persistent lack of dollar demand continued to boost the performance of the shilling against the dollar on Wednesday.

With supply for foreign currency outweighing dollar buyers, the home unit stood tall against the greenback throughout the session. The USDUGX pair drifted towards the lower regions of the 3680-3700 range.

As the dearth in foreign currency demand ensues, we see the local unit strengthening further against the dollar barring any fresh factors.

The U.S dollar was softer yesterday on the US-China trade tussle and poor retail sales figures, printing at 0% in September against a 0.3% expectation.

Attention shifts to a string of second-tier data from the U.S, including building permits, housing starts, jobless claims and industrial production.

The EUR/USD pair was initially held back by softer than expected inflation figures on Wednesday. However, it rallied towards 1.1100 levels later in the day on broad dollar weakness.

As Brexit headlines continued to capture all of the markets’ attention yesterday, the GBP/USD pair climbed to seven-month highs, on hopes that there will be an agreement to discuss at the European Union summit in Brussels later today. U.K Consumer price index figures were released yesterday, printing flat at 1.7% year-on-year.