The shilling traded within confined ranges against U.S. dollar on a rather calm Thursday trading session.
The session saw the home unit little changed versus the greenback on the back of minimal but matching flows on both the demand and supply counters.
We expect the local unit to trade within the 3640-3690 levels, as the local currency market continues to be characterized by little activity.
The dollar was stalled on Thursday a day ahead of the of U.S. gross domestic product data, little moved by weak factory activity data or President Donald Trump’s impeachment.
A fall in Philadelphia Fed’s business conditions index to 0.3 in December from 10.4 in November also failed to dent the dollar.
The euro held steady against the dollar as the market awaits the release of GDP data later today. The third-quarter gross domestic product is predicted to be unchanged at 2.1%. The number was revised upwards from the initial release of 1.9% to 2.1% last month.
The GBP/USD pair was down as The Bank of England “didn’t seem too dovish but none too positive either. “They seem to be in the same mode as the Fed where they’re just watching carefully to see how things politically are going to work out.”