A dearth in market activity left the USDUGX currency pair stuck within what is now a familiar furrow in Friday`s trading session.
Market participants were slow off blocks, leaving the pair within the 3665-3685 on account of subdued albeit matching flows on both the supply and demand counters.
We expect activity to pick up as we move towards the end of the month, with the Shilling’s new trading levels likely to manifest.
The U.S. dollar was stronger for the majority of Friday’s session but later dipped against other major currencies after China left early from ongoing trade talks with the U.S.
U.S. and Chinese deputy trade negotiators began trade talks on Thursday to lay the groundwork for October’s high-level discussions. However, the Chinese delegation suddenly cancelled a visit to Montana on Friday and headed back to China, which put the talks in limbo.
The euro traded lower against the dollar despite better-than-expected Eurozone Consumer Confidence improving to -6.5 in September, from -7.1 in August, beating expectations of -7.0 reading.
Sterling retreated from 2-month highs after Irish Foreign Minister Simon Coveney dampened Brexit hopes by intimating that there is still “quite a wide gap” between the U.K. and European Union.