Thursday’s trading session saw the recent theme of subdued market activity continue, which constrained the local unit’s movement against the dollar to within a narrow trading band.
The USDUGX currency pair oscillated between the 3680-3700 ranges as dwindling dollar supply from various counters balanced out with corporate foreign currency demand.
Ahead of the weekend, we see limited market activity in the interim, and expect the Shilling to hold within recent trading ranges.
The American currency came under pressure yesterday, on the back of mixed data and the Brexit deal. On the data front, housing starts and industrial production printed below expectations, while jobs data was better than market forecasts.
With no major data releases from the U.S today, traders’ attention will likely be on several Fed member’s speeches.
The EUR/USD pair rallied on Thursday on Brexit news, surging above 1.1100 levels.
The Pound soared on news indicating that an agreement has been reached between EU and UK’s representatives.
Initial headlines suggested that the Democratic Unionist Party (DUP) supported the deal, but the party later formally stated that it would vote against it, pushing the Sterling lower.
Retail sales print from the U.K was better than previous readings, however, investors remain focused on Brexit developments. The U.K parliament will vote on approving the new Brexit deal tomorrow.