Shekel Claws Back Losses As Pressure Mounts On Netanyahu To Halt Judicial Overhaul

The shekel has regained poise amid the ongoing turmoil surrounding Israel's political crisis, even as the BBDXY remains afloat, indicating continued greenback strength. Spot USD/ILS has reversed earlier gains and now trades at ILS3.5842, down 171 pips on the session.

• UK PM Rishi Sunak made veiled criticisms of his Israeli counterpart Benjamin Netanyahu's domestic policies during the latter's visit to London. The British readout of their meeting stressed commitment to "upholding democratic values" and called for de-escalation of growing tensions in the West Bank. In a rare move, the two leaders did not release any joint statement.
• Sunak's low-profile reception of Netanyahu marks further escalation in international pressure on Netanyahu to pause his judicial overhaul. In the recent days, U.S. President Joe Biden urged the Israeli Prime Minister to change tack, while German Chancellor Olaf Scholz sparred with him during Netanyahu's visit to Berlin.
• Separately, Ynet reported that Israeli Defence Minister Yoav Galant has only agreed to postpone but not cancel his speech urging the government to pause the judicial overhaul and is awaiting the final outline of the reforms before taking final decision.