The Uganda shilling closed the week marginally lower against the U.S dollar, in a session that saw subdued market activity.
Dollar demand from corporate and interbank players outweighed dwindling activity on the supply counter to push the local unit 5 shillings lower by the session’s close.
Ahead of the week, we see the home unit oscillating within the familiar range of 3660-3700 as activity gradually slows down across the counters.
The dollar edged lower on Friday, surrendering gains driven by mostly solid U.S jobs report that only slightly missed expectations, as political risk in the U.S and continuing trade talks with China weighed. U.S nonfarm
payrolls increased by 136K in September against an expected 145K increase, while the unemployment rate
dropped to a near 50-year low of 3.5%.
Today, market attention shifts to Fed’s chair Powell’s speech. The Euro gained 1% versus the dollar in the previous trading session, supported by a weaker greenback.
Focus turns to German Factory Orders due today. The British Pound remained on the defensive in the wake of Friday’s report that the European parliament president has rejected the UK PM Boris Johnson’s new Brexit proposal.
The downside, however, remained cushioned, amid a mildly weaker tone surrounding the US Dollar.
