How major currencies traded during the week

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KAMPALA - The Uganda shilling traded stable during the week’s trading session as the unit traded at 3667/3677 at the session opening but closed a tad stronger at the 3662/3672 levels as dollar flows outweighed the minimal demand tickets.

The local unit has traded within a range between 3660-3680 throughout the week.

However, tight liquidity conditions were observed during Friday’s session that kept yields elevated at averages of 11.09% according to Absa market data.

The Kenya shilling remained range-bound during the week, trading within the 129.00-129.25 levels.

In the global markets, the dollar gained strength on Thursday following positive economic data. US retail sales rose 0.4%, exceeding market expectations of 0.3%.

Jobless claims dropped to 241,000 from previous levels of 258,000.

The European Central Bank reduced its benchmark rate by 25 basis points to 3.25%, citing declining Eurozone inflation, which has dropped to its lowest level in three years. However, the economic situation remains concerning.

The Pound reached highs of $1.3022, closing at $1.3010 as UK annual consumer price inflation slowed to 1.7% in September from 2.2%.

In the commodities market, Brent Crude traded at $74.50 a barrel, while West Texas Intermediate traded at $70.77 a barrel. Gold traded at $2706 an ounce.

The tensions in the Middle East continue to impact oil prices, particularly after Israel’s opposition threatened to bomb Iran's oil fields, and Hamas leader Yahya Sinwar was killed.