A quiet session yesterday saw the shilling end the day little changed from previous close.
Sideways trading was the dominant theme in the local currency market with activity from both demand and supply counters remaining well balanced through the day.
In today’s trade, market chatter alludes to range bound trading as demand and supply forces contest for dominance.
Greenback registers little change
The U.S. dollar was little changed on Monday as players await the rate decision by the U.S. Fed expected next week. The blackout period for the Federal Reserve officials began yesterday ahead of its meeting on July 30- 31.
The chance of an aggressive rate cut appears to have eased after Boston Federal Reserve President Eric Rosengren, said the U.S. economy doesn’t require stimulus. The Euro was flat versus the greenback as investor attention remains hooked to the upcoming European Central Bank meeting later on Thursday.
Expectations are that the committee will keep rates unchanged, but send out a strong dovish message, setting the stage for a 10 basis point cut in September.
The pound dipped as the U.K’s conservative party begins voting on who will become the next leader of parliament. Either Boris Johnson – who is regarded as the frontrunner – or Jeremy Hunt will be named the successor to Theresa May later today.