The Shilling’s movement was restricted within tight ranges as calm continued to engulf the local FX market on Tuesday.
A state of equilibrium permeated as trivial dollar inflows matched corporate demand for foreign currency, leaving the USDUGX pair tucked within the previous ranges of 3685-3705.
The currency pair is likely to continue trading within recent ranges albeit with a bullish tinge as activity on the foreign currency supply counter gradually picks up.
The dollar traded sideways against its peers after U.S. President Donald Trump presented no new details on the state of trade talks with China in a speech on Tuesday.
The buck’s movement has been dominated by trade headlines recently, and lack of details in Trump’s highly anticipated speech was seen by the market as a pessimistic signal. The U.S. dollar index stayed range-bound at the 98.30 handles.
The euro rose marginally against the dollar on Germany’s ZEW Economic Sentiment Survey that beat forecasts in November and rose to -2.1 from -22.8. The gains were however capped by ongoing fears of a technical recession by Europe’s largest economy in the third quarter.
The Sterling was a touch softer against the dollar after the release of U.K. Preliminary GDP data, which came in worse-than-expected 0.3% compared to expectations of 0.4%.
U.K Jobs data also showed falling employment, weaker wage growth and fewer vacancies, pointing to a weaker British outlook.