The Uganda shilling edged slightly higher against the U.S. dollar on account of increased foreign currency supply.
The home unit was on a bearish trajectory in early trading as dollar demand from corporate players inundated the market.
However, the shilling reversed all its losses as dollar sellers emerged from the shadows to take advantage of the perceived good price, and close the session 3 shillings stronger.
We see the local currency maintain its current theme of rangebound trading as foreign currency flows continue to guide direction.
The U.S. dollar descended to seven-day lows as worries about global growth were amplified by a sharp decline in U.S manufacturing activity.
Yesterday’s U.S payrolls report further added to the greenback’s woes, as Automatic Data Processing (ADP) employment data reported a 135,000 increase in jobs, slightly missing markets expectations. Focus shifts to US Initial Jobless Claim data due today.
The EUR/USD pair rose modestly, trading at 1.0950 levels on the back of disappointing U.S jobs data, US President Trump’s decision to impose tariffs on the EU likely capped the pair’s upside. Looking ahead, the pair may take cues from the final Eurozone and German Services PMI for September.
The GBP/USD pair seesawed amid mixed Brexit signals, ending the day unchanged at 1.2300 levels as the American currency’s losses extended. Markets watch out for U.K Markit services PMI and Brexit headlines as the U.K P.M makes his final offer to the E.U.