The shekel has strengthened against the major currencies this morning. The shekel-dollar exchange rate is currently down 0.27% in comparison with Friday's representative rate, at NIS 3.624/$, and the shekel-euro rate is down 0.13%, at NIS 3.624/€.
FXCM Israel says in its market review this morning, "After sinking to NIS 3.60/$, the lowest level since September 2014, the dollar-shekel pair managed to halt the negative tide last week and traded in the NIS 3.625/$ region. Nevertheless, the pair did not break through any significant resistance levels, and is exposed to further declines. Only a rise above NIS 3.66-3.67/$ will signal a more substantial upward correction.
"The dollar-shekel pair is still weak in comparison with the trend in the US dollar on world markets. The dollar index had its best week last week since mid-February. This, however, looks like a correction in a downward trend, against a background of disappointment on the markets at US President Donald Trump's inaction on economic policy, with promises of fiscal expansion, tax reform and easing of regulation still unrealized and the market losing patience. Dovish comments by senior US Federal Reserve officials have also moderated interest rate expectations.
"This Thursday, the Bank of Israel will publish its next interest rate decision. It is not expected to raise its interest rate, but its comments on the exchange rate and on its intended policy line are likely to cause volatility in dollar-shekel trading."
Published by Globes [online], Israel business news - www.globes-online.com - on April 3, 2017
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