FXCM: Monday's rate decision may move the exchange rate out of its narrow band.
The shekel strengthened against the dollar and euro in morning inter-bank trading today, reversing yesterday's trend. The shekel-dollar exchange rate has fallen 0.29%, compared with yesterday's representative rate, to NIS 3.479/$, and the shekel-euro exchange rate has fallen 0.41% to NIS 4.809/€.
On Wednesday, the Bank of Israel set the shekel-dollar representative exchange rate at NIS 3.489/$, up 0.14% on Tuesday's rate, and set the shekel-euro representative exchange rate at NIS 4.829/€.
"Volatility in the global and local foreign currency markets continues to stay low, with currency movements within narrow bands," says FXCM Israel this morning. "There is no real trigger at the moment that will move the shekel-dollar exchange rate. The exchange rate is within a crowded technical area, with important resistance levels in the NIS 3.49-3.51/$ area, and important support levels in the NIS 3.45-3.46/$ area. In the absence of any major equilibrium breaker, the shekel-dollar exchange rate will stay flat within these areas. Next week's interest rate decision may be the event that will move the shekel-dollar exchange rate out of the narrow band."
Published by Globes [online], Israel business news - www.globes-online.com - on April 24, 2014
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