The odds were against the Shilling in Tuesday’s trading session, as the home unit reversed its recent gains against the dollar.
Markets

Uganda shilling depreciates on perceived US-China trade talks

The odds were against the Shilling in Tuesday’s trading session, as the home unit reversed its recent gains against the dollar.

A flurry of activity in the morning saw dollar demand tip the scale against the local unit, where it steadied for the majority of the session to close the day 10 shillings lower at 3695-3705.

Looking ahead, we see a continued lull in activity, with the local currency trading within recent ranges against the greenback as traders look for the fresh impetus for further direction.

The U.S. dollar was up against a basket of major currencies on Tuesday helped by perceived progress in U.S.–China trade talks.

China’s Deputy Foreign Minister Le Yucheng said that talks were moving forward and no problem was beyond resolution, echoing U.S. President Donald Trumps’ remarks that both sides were on track to end the trade dispute.

Cable fell off 5-1/2 month highs on Brexit turmoil, following U.K lawmakers rejection of U.K. government’s proposed timetable for Brexit deal ratification, after which U.K. Prime Minister Boris Johnson threatened to call a general election.

The euro was likewise depressed by Brexit uncertainty, shedding 0.20% against the dollar on the day, and will likely continue to be driven by Brexit developments in the near term.