The local Foreign Exchange market was quiet yesterday, with evenly matched trades keeping volatility at a minimum.
Markets

Shilling trades firmly on flows from offshore investors

The Uganda shilling traded firmly against the dollar in yesterday’s session as flows from offshore investors offered support.

Activity on the supply side outweighed demand majority of the trade, with the USDUGX closing in the 3690/3720 band.

Ahead of the weekend, we see the shilling clamping onto further gains as FX activities increase amid skewed liquidity levels in the money market arena.

Dollar falls as traders digest news on Brexit

The U.S. dollar fell as traders digested the latest news on Brexit and Sino-U.S. trade development. The U.S. dollar index that tracks the greenback against a basket of other currencies was down to 95.803.

High-level officials including U.S. Trade Representative Robert Lighthizer, Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He are due to meet in Beijing for a fresh round of talks next week.

Meanwhile, the GBP/USD pair rose to 1.3136 after the European Union delayed the Brexit date by two weeks if U.K. parliament does not endorse U.K. Prime Minister Theresa May’s withdrawal deal next week.

The euro gained entering a phase of consolidation in the $ 1.1370 region as the bulls turn cautious heading into the flash manufacturing and services PMI releases from across the Euro area economies due later today.

The weakening Eurozone economy continues to remain the main concern for the EUR markets amid on-going Brexit uncertainty.