Markets

Uganda shilling traded flat amidst scant greenback inflows

Uganda shilling traded flat amidst scant greenback inflows: The Uganda shilling traded flat against the U.S. dollar on Friday amidst scant greenback inflows that quenched foreign currency demand from interbank players for the majority of the session,

Activity in the local FX market remained subdued leaving the home unit barely moved at the 3693/3713 levels against the U.S. dollar. Market participants anticipate continued stillness in demand activity detaining the USD/UGX pair within current ranges.

Fixed Income traders focus on a 2 year and 15 year bond auctions slated for Wednesday this week.

The U.S dollar held firm against a basket of its peers on Friday after U.S. job data reinforced investors’
expectations that the Federal Reserve will gradually raise interest rates this year.

Investors remain jittery over trade uncertainty in the U.S after China fired back with proposed tariffs on up to $60 billion of U.S. goods in response to White House plans to propose 25% tariffs, instead of 10% on $200 billion of imported Chinese goods.

The Pound Sterling was higher on Friday, with the GBP/USD rising to 1.3019, recovering from earlier lows after the Bank of England decided to increase interest rates on Thursday despite Brexit concerns.

The EUR/USD managed to find its way towards the 1.1600 handle but offers there halted any further
advance and the pair fell below the 1.1580 handle in the wake of US data releases.