The Uganda shilling’s movement against the U.S. dollar remained constrained within the 3680-3700 band on Tuesday.
The session saw minimal activity across the counters that just about evened out on the day, with USD/UGX pair closing the day unchanged from previous day’s close. The domestic unit is likely to continue trading within recent ranges as market continues to witness a lull in activity.
Dollar high on stronger-than-expected retail sales
The U.S. dollar was higher on Tuesday after stronger-than-expected retail sales showed the economy was healthy, even as the Federal Reserve is expected to cut interest rates. Retail sales rose 0.4% in June, compared to expectations for a slight gain of 0.1%.
EUR/USD was down to $1.1218, after a survey by the ZEW institute showed that the mood among German investors deteriorated more sharply than expected in July amid an unresolved trade dispute between China and the United States as well as political tensions with Iran.
Meanwhile, the pound fell to its lowest level in two years after concerns of a no-deal Brexit intensified. Both Prime Minister candidates Jeremy Hunt and Boris Johnson have voiced their opposition to an Irish backstop agreement, making it even more likely that the U.K. will leave the European Union on Oct. 31 without a deal.