A shortage in market activity left the USD-UGX currency pair stuck in what is now a familiar rut in Friday`s trading session.
Market participants were slow off their trading blocks, leaving the pair within the 3660-3680 levels on account of subdued flows on both the supply and demand counters.
Ahead of the week, we expect activity to pick up as the month of February settles in, and guide the Shilling’s near term trading direction.
Dollar slips against rivals
The U.S. dollar was on track to break a two-week winning streak Friday after slipping against its rivals as a rebound from session lows in the pound and dovish comments from the Federal Reserve vice chairman weighed.
The dovish comments come just days after the Federal Reserve’s minutes indicated that members were preparing to halt their balance sheet unwinding program later this year. The cable rose to $1.3070 from a session low of $1.2969 on hopes that the deadline for the U.K. to leave the European Union on March 29 would be pushed back.
The U.K. is seeking changes to the Irish backstop — a measure included in the withdrawal agreement to prevent a hard border between the Northern Ireland and the Republic of Ireland — to increase the changes of the deal making it through the U.K. parliament.
The EUR/USD was up at $1.1347 as core consumer inflation in the EU was in line with economists’ forecasts.