The local FX market was quiet yesterday, with evenly matched trades keeping volatility at a minimum. Market players witnessed marginal gains on the shilling against the buck which were momentarily reversed as the session came to a close, leaving the USD/UGX pair flat paralleled to previous close. In the new day, we expect demand and supply factors to provide direction for the local unit.
US dollar rises against peers
The U.S. dollar rose on Tuesday as data showed that consumers weren’t concerned about the trade war rhetoric impacting their pocketbook.
The dollar held mostly steady even after benchmark 10-year U.S. Treasury yields hit as low as 2.243%, their lowest since September 2017.
The greenbacks own status as a safe-haven helped amid worries about the trade tensions and Italy’s budget policy. The U.S. 10-year yields were last at 2.253%. Meanwhile in the U.K., Tory leaders contested for Prime Minister Theresa May’s spot, who is leaving her post on June 7.
GBP/USD fell to $1.2665. Elsewhere, the euro fell due to the stronger dollar and political tensions over who will rule Europe as the European Union meets to decide who will succeed JeanClaude Juncker as European Commission president.