Uganda shilling and global market, June 4, 2016


The Uganda shilling closed at 3363 on the US dollar, 4882 on the British pound, 3818 on the Euro, 50.30 on the Rupee, 33.33 on the Kenyan shilling, 2599 on the Canadian dollar, 2474 on the Australian dollar and 1.54 on the Tanzania shilling.

There is a little bit of weakness on the Uganda shilling but not terribly out of place.  The resistance for the shilling is at 3350 and the support is at 3375 so we have about ten shillings to play with before we hit resistance or support.  Ideally,  it would be better if the shilling could bust through the 3350 mark and climb to its next resistance at 3325.  Should the shilling crash through the support of 3375, then the next stop will be 3500.  Remember in December 2015, the shilling crashed all the way to 3800 but we are very far from that level and BoU seems to be doing a good job at keeping it afloat.

Coffee Arabica closed at $3.17 a kilo.

Coffee Robusta closed at $1.86 a kilo.

The strength in coffee for now seems to be Robusta.  Uganda grows both types but as always said, traders need to mix their container shipments with both types because while Robusta looks strong, Arabica can sneak up and do better.  This is what we call hedging.  One cannot rely on only one type when the other type might do better.

Gold is trending at $1244 per ounce.  Did we just see that price?  It gained a whopping $36 per ounce. Nice play for the buyers but terrible for the shorters.  This is likely an indication that money is running out of the markets into the safety of gold.  Let us see how the markets made out today.

Oil (Brent Crude) did not move even a dollar today.  It closed at the same level as yesterday.  We will soon see how that level affected the markets, most especially Toronto which is oil heavy.



Shanghai gained 13 points and closed at the same level as its 50 day moving average (MA).  This was a resistance level and it is likely that the $SSEC will go higher next week.  Heaven willing.

Hong Kong gained 2 points and closed above a major resistance line.  Not only a resistance line but the point where the 50 day and 200 day MA lines meet.  Hong Kong looks good to buy and hold.  Our chart for today.

Tokyo gained 80 points but it is nothing to write home about.  The Nikkei is in for a bit more falling.


Frankfurt lost 105 points and its chart is pointing down south.

Paris lost 44 points and it is following gravity.

London gained 24 points but the chart looks like it is going to follow its cousins south.

North America:

Toronto gained 90 points.  Nice play.  So it looks like if oil holds its price Toronto will not lose ground or if oil falls, Toronto will fall.  Today, oil held its price and no one in Toronto (wait, the $TSX is traded globally) did not panic and dump their positions.

Dow Jones Industrial Average lost 32 points but this is nothing for the DOW.  Likely due to profit taking.

Standard and Poor lost 6 points.  The chart is pointing to losses next week for the North American indices.  The $SPX seems to be topping out and we should expect a pull back next week.

NASDAQ lost 29 points and it is also topping out indicating that next week this index will likely go down.


We cover World News on The Insider and today beside all the politics, we are being faced with the floods in France, Germany and Belgium.


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