The local foreign exchange market experienced calm on Wednesday with the Uganda shilling trading within a narrow band against the U.S. unit.
Markets

U.S. dollar weak as China signals openness to trade deal

The local foreign exchange market experienced calm on Wednesday with the Uganda shilling trading within a narrow band against the U.S. unit.

Paltry dollar inflows just about matched the demand for foreign currency from the corporate sector and left the USDUGX currency pair a mere 5 shillings higher by the closing bell.

The pair is likely to trade within the latest trading range albeit with a bullish tinge as we anticipate mid-month activity to gradually pick up on the foreign currency supply counter.

The U.S. dollar slipped as traders digested the latest Sino-U.S. trade news. A speech by U.S. Federal Reserve Chairman Jerome Powell also received some focus overnight.

The U.S. dollar index that tracks the greenback against a basket of other currencies slipped to 98.722.

The GBP/USD pair rebounded 0.2% to 1.2227 despite increasingly bitter exchanges between London and other European capitals, which further increased the risk of a disorderly “No-Deal Brexit.”

Elsewhere, EUR/USD gained to $1.0997 as it appeared that Brexit talks between the EU and U.K. had stopped just a few weeks before the two were set to split.