Increased dollar demand saw the Uganda shilling edge lower against the U.S. unit on Wednesday.
The home unit was down 10 shillings, with the USDUGX currency pair closing the day at the upper range of the recently established 3705-3715 farrow, on the back of increased activity on the foreign currency demand counter.
We see competing forces taking centre stage in the local FX market, limiting the movement of the local unit against the greenback within familiar ranges.
The U.S. dollar was slightly lower against its peers yesterday, as Brexit uncertainty led to a pause in trading.
Today, direction for the American currency will be determined by a string of data from the U.S; including
nondefense capital goods orders, jobless claims, Markit PMI and new home sales.
The EUR/USD pair traded above 1.1100 lines yesterday, paring its losses later in the day on Brexit headlines.
Focus shifts to European Central Bank rate decision today, which will be the last with Mario Draghi as
President. Markets also expect Preliminary German and Eurozone Markit PMI.
The GBP/USD pair settled above 1.2900 levels on Wednesday after slipping below the same. The pound is likely to remain supported as prospects of a no-deal Brexit have seemingly been taken off the table. Having failed to persuade Parliament to approve the Brexit deal as law, UK’s Prime Minister is now waiting for the European Union to decide whether to agree to his three-month delay request.