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ILS: Shekel Loses Ground Amid Rising Risk Premium

ILS

The recent sell-off in USD/ILS found support at 3.6589 last Friday and the pair rebounded off there at the start to the new week, even as the greenback trades on a softer footing (BBDXY -0.3%). When this is being typed, the pair deals +401 pips at 3.7070 and bulls look for further gains towards Aug 6 high of 3.8533. Conversely, bears keep an eye on Jul 12 low of 3.5800.

  • Hamas on Sunday rejected a draft ceasefire-hostage agreement discussed in Qatar last week. Meanwhile, local media suggested that Prime Minister Netanyahu told his ministers that he was pessimistic about the odds of the deal being reached, especially after Hamas failed to send a delegation to the latest round of talks. US Secretary of State Anthony Blinken is touring the region in a bid to save the deal, but mounting obstacles may be adding to Israel's risk premium.
  • There are no tier-1 data releases in Israel today, with unemployment data coming up tomorrow.

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