The shekel has strengthened against the major currencies this morning. The shekel-dollar exchange rate is currently down 0.2% in comparison with Friday's representative rate, at NIS 3.8373/$, and the shekel-euro rate is down 0.71%, at NIS 4.2689/€. No new representative rates were set yesterday because of the Memorial Day holiday in the US.
FXCM Israel says in its market review this morning, "The dollar-shekel pair marked time at the opening of the trading week around the NIS 3.84-3.85 level, mainly because of thin trading, as there was no trading in the US yesterday.
"The US market returns to normal activity today, and volatility can be expected to rise. Since Federal Reserve chair Janet Yellen, in her most recent remarks, made an interest rate rise conditional on continued improvement in the economy, market players will closely monitor the crowded diary of economic statistics releases in the US, with private consumption, personal income and consumer confidence figures due today. Strong numbers will reinforce expectations of an interest rate hike and provide a following wind for the US dollar, which has risen for four consecutive weeks on world markets. US employment numbers are due later in the week, the main report being the NFP report on Friday, which could be decide whether the Federal Reserve will raise its interest rate in the next two months or not.
"The dollar-shekel pair is currently being traded in the NIS 3.80-3.90 range, and only clarification of the picture on the interest rate front in the US is likely to give the pair a clear direction."
Published by Globes [online], Israel business news - www.globes-online.com - on May 31, 2016
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