The shilling traded flat versus the greenback in what was a lacklustre Thursday trading session.
Frivolous dollar demand from corporate and interbank players was amply met with inflows from the various sectors, confining the USDUGX currency pair within the now familiar 3660-3680 range.
Ahead of the weekend, yesterday’s trading range will likely be preserved as investors look out for fresh economic factors to give price direction.
Dollar holds gains against peers on rise in U.S. yields
The buck held gains against its peers yesterday bolstered by a rise in U.S. yields. The dollar index against a basket of six major currencies was little changed at 96.582 after edging up about 0.15 percent overnight when long-term Treasury yields surged to a one-week high amid on news of progress in U.S.-China trade talks.
Elsewhere, Sterling has swung wildly between a low of $1.2895 and a high of $1.3109 this week as British Prime Minister Theresa May tries to persuade European Commission chief Jean-Claude Juncker to modify her withdrawal deal and then get the tweaked agreement through the British parliament. The pound was steady at $1.3042 after inching lower overnight.
The euro was higher at $1.1340 and on track to gain 0.4 percent on the week. The single currency will be watching today’s release of German GDP where both the previous report and forecast are in line at 0.0%. The risk being that if the largest Eurozone economy reports negative growth for two consecutive quarters, it will have entered an official technical recession.