Shekel Claws Back Initial Losses, Key Judicial Bills Clear Initial Hurdle In Parliament

The shekel shows little reaction to the passage of three key bills being part of the government's highly controversial judicial overhaul overnight. Spot USD/ILS climbed as high as to ILS3.6554 before giving away these gains as the BBDXY index round-tripped from its session peak.

• The spot rate last deals at ILS3.6270, a touch higher on the day, as bulls continue to seek an upswing towards Feb 27 high of ILS3.6935. The key near-term support has been defined at ILS3.5669, which limited losses on Mar 9.
• Implied volatilities remain at elevated levels, with one-month tenor approaching its best levels in three years last touched in late February. One-year implied volatility has crept to its highest point in a week.
• A bill severely constraining the High Court's ability to review legislation was passed by a comfortable margin of 61-52 alongside other crucial proposals as lawmakers voted along party lines. It now needs to be approved in two more plenary votes to become law amid a push from Justice Minister Yariv Levin and Constitution, Law, and Justice Committee head Simcha Rothman to finalise the reform as soon as possible.