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Refreshing Cyclical Lows Ahead Of Israeli CPI

ILS

Spot USD/ILS yesterday pierced resistance from Jun 2 cycle high of 3.7551, before staging a more convincing break above that level today and rallying as high as to 3.7755. This upswing has now lost steam, however, with the pair trimming gains to last deal +25 pips at 3.7569.

  • Technically, trend conditions remain bullish. A break above the 3.80 figure would open up Mar 17, 2020 high of 3.8894. Conversely, bears keep an eye on 3.6258, he low print of Aug 2, followed by the 200-DMA at 3.5790.
  • Globes pointed to "the low trading volumes in August and the demand for dollars" as factors facilitating the shekel's depreciation alongside well-documented jitters in global financial markets.
  • For the record, Fitch affirmed Israel at A+ with a stable outlook yesterday and delivered a relatively limited warning on the consequences of the country's controversial judicial overhaul.
  • The focus turns to Israel's July CPI figures, which are due for release at 16:30BST/18:30IDT.

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