The Uganda Shilling recouped some of its losses against the greenback on Friday backed by dollar inflows from corporate players as well as position squaring by traders ahead of the weekend.
Subdued market activity characterized the session for the better part of the day. A late afternoon dollar sell-off by the corporate and interbank sectors saw the local unit close 10 shillings higher in the 3710-3730 band from the previous close.
We expect the home unit to continue with its range-bound theme, albeit with a bearish tinge in the short term.
The U.S. dollar continued its upward trend on Friday on positivity surrounding the U.S China trade talks, as both sides neared finalizing parts of the first phase of the trade pact.
On the data front, the Michigan Consumer Sentiment Index released on Friday showed a slight drop
in personal consumer confidence.
The EUR/USD pair slipped below the 1.1100 levels on Friday, mostly lower on broad dollar strength and mixed data.
October German IFO business climate and expectations figures beat market projections while German consumer confidence and current assessment numbers printed slightly lower than expected.
Focus shifts to the ECB’s president’s speech today.
The GBP/USD pair slumped to 1.2800 lines on Friday, with the pound lower on Brexit uncertainty. Focus remains on Brexit headlines to provide direction for the pair, as investors believe that the UK would not crash out of the EU without a deal.
