FXCM: The possibility of an intervention by the Bank of Israel at these levels deterred short traders.
The shekel has weakened against the dollar and euro in morning inter-bank trading today. The shekel-dollar exchange rate has risen 0.22%, compared with yesterday's representative rate, to NIS 3.511/$ and the shekel-euro exchange rate has risen 0.29% to NIS 4.836/€.
FXCM Israel says today, "After two days in which the shekel-dollar exchange rate succeeded in staying above the September low of NIS 3.473/$, sellers have broken and the exchange has climbed back above NIS 3.50/$, despite the dollar's weakness in international markets. It is possible the fact of a possible intervention by the Bank of Israel at these levels deterred short traders."
FXCM adds, "There is great uncertainty over the Fed's next steps, and this picture might clarify next week, determining the direction of the dollar. The shekel-dollar exchange rate touched NIS 3.52/$ yesterday before falling back. If the exchange rate can establish itself above NIS 3.50/$, and climb toward NIS 3.52/$, this could pave the way for a larger correction, in which case the next resistance level will be NIS 3.545/$. Movement below NIS 3.50/$ could again put downward pressure on the exchange rate."
Published by Globes [online], Israel business news - www.globes-online.com - on December 12, 2013
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