The Uganda shilling appreciated on the first day of trading, with dollar supply outpacing foreign currency demand, leaving the shilling on the front foot.
Markets

Shilling slips against dollar amid mounting greenback demand

The Uganda Shilling surrendered to the dollar amid mounting greenback demand from interbank players and firms in the manufacturing sector.

The home unit was constrained within the 3720/3740 levels in the morning, when some foreign currency buyers swam in and pushed the unit higher to close at the 3725/3745 bracket.

Market chatter alludes to a range bound session at the 3720/3750 band with a bias ting towards the shilling weakness as forex activity expands.

Dollar eases against peers

The dollar eased against some of its peers as hopes of progress in the Sino-U.S. trade dispute boosted commodity-linked and riskier currencies. The weaker job openings print did little to sway investor expectations that the U.S. labour market remains robust as data last week showed the economy created more jobs than expected in December.

The pound succumbed to Brexit uncertainty as traders seemingly took some profits off the table ahead of a debate in the UK parliament on Prime Minister Theresa May’s Brexit withdrawal agreement. The vote on the agreement is slated for Jan. 15.

The EUR/USD edged lower to $1.1445, with the latter coming under pressure as data showed German industrial output unexpectedly fell in November, raising concern the country may be heading for a technical recession in the fourth quarter of 2018 after contracting in the third. Indicative Cross