FXCM Israel: Traders are sitting on the fence until the UK referendum results are known.
The shekel strengthened today against the dollar and weakened against the euro. The Bank of Israel set the shekel-dollar representative rate down 0.753% from Wednesday's rate at NIS 3.823/$, and the representative shekel-euro rate was set up 0.140% at NIS 4.353/€.
Yesterday, the Bank of Israel set the shekel-dollar representative rate down 0.181% from Tuesday's rate at NIS 3.852/$, and the representative shekel-euro rate was set down 0.524% at NIS 4.347/€.
FXCM Israel said in its morning survey, "The shekel-dollar exchange rate has fallen below the NIS 3.85/$ threshold while the markets wait tensely for today's UK referendum results. After the high volatility in financial markets at the start of the week, in the past few days we have seen this volatility fade as the markets remain on hold with the main players in the market preferring to sit on the face and make no commitment in either direction. There can be no doubt that if the British vote to quit the EU, it will cause, at least in the short term, a snowball in the financial markets that would first and foremost harm sterling and the euro. Throughout the campaign analysts and economists have spoken threateningly about the economic fallout verging on catastrophe if the British decide to quit the EU so it is reasonable to assume that on a psychological level, the market will react with panic in the event of a British exit when the picture becomes clear. If the British vote to stay in the EU then the market will let out a sigh of relief.
Published by Globes [online], Israel business news - www.globes-online.com - on June 23, 2016
© Copyright of Globes Publisher Itonut (1983) Ltd. 2016
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