The shilling’s trundle downwards continued for the third consecutive day in yesterday’s session on the back of weakening sentiments and augmented demand for the greenback.
The USDUGX pair began the day holding steady, but this changed in late trading after corporates flooded counters in a bid to pick up the buck in order to meet their end of month obligations.
Ahead of the weekend, indications are that market may now hold out in current ranges, before committing to fresh direction.
Dollar receives boost from American economy performance
The U.S. dollar received a boost on Thursday after data showed that the American economy registered its strongest annual growth in 12 years, but geopolitical concerns held the greenback in check, dropping back towards the unchanged mark. The data was enough to initially push the
U.S. dollar higher, but enthusiasm began to fade as concern over the fact that U.S. President Donald Trump walked away from his summit with North Korean leader Kim Jong-Un without a deal prevailed in markets.
The GBP/USD dropped to 1.3272, off Wednesday’s intraday peak of 1.3349 as U.K. Prime Minister Theresa May expressed confidence that a no-deal Brexit could be avoided. The euro created a doji candle with long upper shadow signalling strong indecision in the market place.
The common currency picked up a bid in Europe and jumped to a high of 1.1420, as the German 10-year bond yield hit three-week highs near 20 basis points, after the Eurozone’s biggest economy suggested a pickup in inflation. The move above 1.14, however, was short-lived where dollar demand pushed EUR/USD all the way back to its opening rate of 1.1370.