FXCM Israel: Markets see a 38% likelihood of the US Fed raising interest rates in June.
The shekel continues to strengthen in morning inter-bank trading against the dollar and against the euro for the third straight day after the Bank of Israel Monetary Committee decided on Monday to keep the interest rate for June unchanged at 0.1%.
In late morning inter-bank trading, the shekel-dollar exchange rate was down 0.56% at NIS 3.834/$ compared with yesterday's representative rate, and the shekel-euro rate was down 0.26% at NIS 4.284/€.
Yesterday, the Bank of Israel set the shekel-dollar representative rate down 0.259% from Tuesday's rate at NIS 3.855/$, and the representative shekel-euro rate down 0.611% at 4.295/€.
FXCM Israel said this morning, "The shekel-dollar exchange rate continues to correct downwards to around NIS 3.84/$. The next possible stop is April's low point of NIS 3.822/$. Worldwide too the dollar's recent upward momentum has also been halted with markets continuing to price in the likelihood of an interest rate hike in June. Future contracts on Fed interest rates are seeing a 38% chance of an interest rate hike in June, slightly higher than at the start of the week and at the moment markets are closely tracking US macroeconomic data being published. "
Published by Globes [online], Israel business news - www.globes-online.com - on May 26, 2016
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