Shilling rebound from week’s lows amid subsiding dollar appetite as well as positive sentiments around the local unit.
The upbeat momentum in the home currency was sound throughout the day bolstered by foreign currency inflows amidst waning demand from importers.
In the new week we see the movement of the USDUGX pair driven by flows, with traders keeping watch for a breakout of key technical levels in either direction.
Greenback slips against peers
The U.S. dollar fell on Friday after the American economy added fewer jobs than expected last month. The U.S. economy created 75,000 jobs in May, much fewer than expected, while wage inflation eased.
The data increased expectations that the Fed will cut rates as the job market peaks. Expectations were already higher that the central bank will cut rates due to trade tensions between the U.S. and China and lowered growth forecasts around the globe.
Meanwhile, the euro jumped to a seven-week high with EUR/USD rising to $1.1318 supported by a weaker dollar.
Sterling was also higher, with GBP/USD up to $1.2745. The outlook for Sterling remains neutral, and from a fundamental perspective is likely to stay that way, with Brexit negotiations currently on the back-burner as UK domestic politics take over.