ILS: Shekel Stabilises After Shedding ~1.4% Over Previous Two Days

Spot USD/ILS trades at 3.6714, 120 pips shy of neutral levels, with the shekel outperforming all EMEA peers save for the South African rand. Firmer losses past Jul 23 low of 3.6122 and Jul 12 low of 3.5800  would send an encouraging signal to bears, while bulls look for a rally above the 50-DMA (3.6961) and towards Jul 1 high of 3.7810.

• Israel pushed back against US VP Kamala Harris's criticism of its conduct in Gaza, even as she said that "Israel has a right to defend itself." The Vice President spoke after meeting with Prime Minister Benjamin Netanyahu, who is currently visiting the US and is scheduled to meet with Republican presidential candidate Donald Trump later today for the first time since the latter left office.
• Globes reports that "there is major concern that the government’s economic policies could lead to a further cut in Israel’s credit rating," as works on the 2025 state budget are ongoing. The article reminds that "the next round of Israel's rating announcements from Moody's and S&P will be in November."