FXCM Israel: Markets are hoping that the British will vote to remain in the EU.
The shekel is weakening in early afternoon inter-bank trading today against the dollar and against the euro. The shekel-dollar exchange rate is up 0.28% at NIS 3.862/$ compared with yesterday's representative rate, and the shekel-euro rate is up 0.35% at NIS 4.378/€.
Yesterday, the Bank of Israel set the shekel-dollar representative rate down 0.311% from Friday's rate at NIS 3.851/$, and the representative shekel-euro rate up 0.565% at NIS 4.363/€.
FXCM Israel said in its morning survey, "After a volatile day of trading in which the shekel-dollar exchange rate moved sharply between NIS 3.83/$ and NIS 3.87/$, the rate has stabilized in the NIS 3.85-3.86/$ band. We also saw volatile trading on world markets yesterday dictated by the most recent polls from Britain, which now indicate a turn in favor of those wanting the country to remain in the EU. World markets hope this momentum will carry through to the day of the referendum on Thursday and that Britons will vote not to leave the EU. Market reaction towards the latest polls was especially strong with risk assets shooting upwards at the expense of save haven assets. On the foreign currency exchange markets, sterling strengthened by more than 2% against the dollar and the yen as well as against the shekel. If, however, the British ultimately vote to leave the EU, expect a sharp reaction by the markets in the opposite direction."
Published by Globes [online], Israel business news - www.globes-online.com - on June 21, 2016
© Copyright of Globes Publisher Itonut (1983) Ltd. 2016
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