Shekel stregthens against dollar

shekels
shekels

FXCM Israel: The shekel-dollar pair is trying to break through the resistance atNIS 3.94-3.95/$.

The shekel opened weakeragainst the major currencies this morning but is now strengthening against the dollar. The shekel-dollar exchange rate is currently down0.34% in comparison with yesterday's representative rate, at NIS 3.917/$, and the shekel-euro rate is up 0.23%, at NIS 4.414/€.

On world markets, oil futures rose for a third consecutive day yesterday, by more than 8%, making it a 27% surge in three days, although prices have corrected today, with October Brent down 3% to $52.65. Behind the rise are a downward revision of US crude production data and indications that OPEC members will take steps to curb production.

Returning to the shekel, FXCM Israel says in its market review this morning: "The shekel-dollar pair continues to be pushed upwards, and is trying to break through the significant resistance region of NIS 3.94-3.95/$. On the global foreign exchange market too, despite the falls in share prices, we have seen a decline in volatility, after the stormy week last week, and that is an encouraging sign. The falls on stock markets yesterday were fairly moderate, and even predictable after the sharp rises at the end of last week, although there are fears that this could be only a lull before the next wave of falls, and the coming week will be critical.

"On the foreign exchange market, the dollar is again back in focus, with the market counting down to the Federal Reserve's interest rate meeting for September, which until recently was expected to produce a first rise in dollar interest rates. At present, in the light of the recent turmoil, the chances appear to be growing that the Fed will prefer to defer an interest rate hike for at least another month, since it would not make sense to raise the interest rate when the market is in such a sensitive state, with any move liable to put it off balance. This week's main release will be the US employment report. A good figure can be expected to boost the dollar."

Published by Globes [online], Israel business news - www.globes-online.com - on September 1, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

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