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ILS: Shekel Rebounds From Cyclical Lows

ILS

Spot USD/ILS has staged a sharp pullback from fresh cyclical highs printed yesterday, with the pair falling by 1.1% or 432 pips so far to last trade at 3.7843. Bears look for a clean breach of Jul 1 high of 3.7810 before setting their sights on the 3.70 level. Bulls see Aug 6 high of 3.8533 as their initial target. The pair's move has been at odds with a positive performance from the BBDXY Index.

  • The angst surrounding a looming Iranian retaliation against Israel seems to have moderated. The Washington Post reported that the White House's decision to deploy more military assets to the region coupled with US-led diplomatic efforts to dissuade Iran from launching a large-scale attack might be working.
  • On the other hand, Hamas tapped Yahya Sinwar to become its new political leader, a choice believed to reduce the odds of any imminent Gaza ceasefire deal. For more details see our earlier political risk bullet.

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