Shekel Advances After Biden-Netanyahu Call Even As Protests Intensify

Spot USD/ILS has been on the back foot today, with the shekel outperforming all its EMEA peers except the rand. The rate last deals at 3.6039, some 240 pips lower on the day, unwinding yesterday's gains. A break below Jul 14 low of 3.5974 would turn bearish focus to the 200-DMA at 3.5645. On the flip side, bulls look for gains past Jun 30 high of 3.7308 and towards Jun 2 high of 3.7551.

• While the official readout of the first phone call between Israeli Prime Minister Netanyahu and US President Biden did not mention an invitation to the White House, US NSC spokesman subsequently confirmed that the two leaders agreed to meet in the US, with Netanyahu's office noting that it will happen in "near future." The invitation sowed confusion as the Israeli Prime Minister continues to press ahead with policies which drew sharp criticism from the Biden administration and prevented the POTUS from inviting Netanyahu for months after he took office.
• Street rallies against the government's judicial overhaul intensified, with protesters targeting the Tel Aviv stock exchange, train stages, roads and homes of officials. Trading at the local bourse wasn't disrupted.
• Kan reported that Netanyahu is holding last-minute consultations on the option of softening the controversial "reasonableness" bill, which is set to advance to the final stages of legislative process in the coming days.
• Israel's 12-month ahead inflation expectations fell to +2.8% Y/Y this month from the revised +2.9%, data from the Bank of Israel showed.