The Uganda shilling clamped onto its gains in yesterday’s session as commercial banks continued to convert their dollar holdings to cope with the local currency liquidity squeeze.
Activity on the supply counters outweighed demand throughout the day locking the USD/UGX pair in the 3680/3700 bracket stronger than previous close.
Outlook remains on a sturdier shilling as FX activities expands amid muted activity on the demand side.
Greenback rides on pound weakness
The greenback traded higher on Tuesday on the back of pound weakness shrugging mostly negative U.S. data; core producer price index (PPI) for final demand fell 0.2% last month, pressuring the PPI for the 12 months through December, to 2.7%, below forecasts for a 2.9% rise. Meanwhile, the US government shutdown continues.
The EUR/USD pair fell to 1.1450 lines, pressured by growth of German GDP throughout 2018 of 1.5%, the slowest pace of growth in 5 years and dovish remarks from European Central Bank President Mario Draghi, who continued to call for monetary policy easing amid concerns about slowing global growth.
Prime Minister Theresa May lost her bid to bring the illfated Brexit deal through the House of Commons by a huge majority of 230 votes. The tally of 432-202 had 118 Conservatives voting against their own Prime Minister in the most askew government loss in history. The GBP/USD pair rebounded after the outcome of the vote trading at 1.2870 levels. Indicative Cross Rates Buy Sell