The shekel is mixed against the major currencies this morning. The shekel-dollar exchange rate is currently down 0.28% in comparison with Friday's representative rate, at NIS 3.852/$, and the shekel-euro rate is up 0.68%, at NIS 4.3677/€.
FXCM Israel says in its market review this morning, "This week's trading will be entirely dominated by the referendum in the UK, which is due to take place on Thursday, with the results expected on Friday. The pound sterling, which recently weakened against most of the major currencies, has managed to recover a little in the past three sessions, following the murder of the member of Parliament in Britain, which it is believed could tip the balance of public opinion in favor of remaining in the European Union.
"If the British public does decide to remain in the EU, this will cause a huge sigh of relief on the financial markets and will lead to a recovery in British assets. On the other hand, a decision to leave the EU will put the markets in a spin and raise demand worldwide for safe assets, headed by the yen and the Swiss franc.
"If Britain leaves the EU, this will not just affect sterling; the euro will also take a hit, because of the fact that such a substantial economic and political power leaving the EU will damage market confidence in the survival of the EU, which is having to deal with many economic and political challenges.
"The shekel-dollar pair was traded in the narrow NIS 3.85-3.885/$ range last week. It looks as though as the British referendum gets closer market players are choosing to reduce exposure to risky assets such as equities, commodities and exotic currencies and to take refuge in the yen, the Swiss franc, the US dollar, bonds, and gold."
Published by Globes [online], Israel business news - www.globes-online.com - on June 20, 2016
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