It was a drab end to the week, with little in terms of price action recorded. The USD/UGX pair maintained a tight range, closing the day unchanged from previous close, with most players staying on the sidelines ahead of the weekend.
In the new week, we expect a pickup in trading activity, with the direction of the local currency mainly flow driven in the near term.
US dollar falls
The U.S. dollar fell slightly on Friday after U.S. President Donald Trump said America will cut all ties with Chinese tech company Huawei in a signal that the tit-for-tat trade war is unlikely to end anytime soon.
The news came after Beijing halted its purchases of U.S. farming goods on Monday. Trade tensions escalated in the week after the U.S. officially declared China a currency manipulator and China allowed the yuan to weaken to below 7 to the dollar.
The euro inched up slightly, held back by political uncertainty in Italy after Deputy Prime Minister Matteo Salvini called for a vote of no confidence in the governing coalition, which could lead to snap elections. EUR/USD rose 0.2% to 1.1198.
Meanwhile GBP/USD fell to $1.2073 after second-quarter GDP fell 0.2%, increasing recession fears on the back of Brexit uncertainty.