Shekel Continues To Recover Despite Steady Flow Of Hawkish Comments On Judicial Overhaul

Spot USD/ILS extends its pullback from Jul 27 high (3.7300), despite broad-based gains for the greenback. The rate last changes hands at 3.6466, down 300 pips on the session. Bearish focus still falls on the 200-DMA, which intersects at 3.5704. Conversely, bulls look for a rebound above Jul 27/Jun 30 highs of 3.7300/08 before targeting Jun 2 high of 3.7551.

• Globes circulated comments from Prico's CEO Yossi Fraiman, who said that the "supply of foreign currency for salary and tax payments, alongside lively activity by local institutions working to change the composition of the investment portfolio, has created an excess supply and has led to a weakening of the dollar against the shekel," but the local currency may remain volatile amid domestic political developments.
• PM Netanyahu has stuck with his familiar stance on the judicial overhaul, refusing to commit to abiding by an imminent High Court ruling on the "reasonableness" bill. Meanwhile, opposition leader Lapid ruled out any coalition with Likud until Netanyahu remains in power and said that his political camp won't return to talks over the judicial reforms unless the government freezes them until 2025.