Shekel Edges Higher, USD/ILS Hovers Above 4.00 Mark

Spot USD/ILS has edged lower, with the shekel edging ahead of most of its EMEA peers. The pair last deals at 4.0343, down 67 pips on the session. Should bears manage to force a break below the psychologically significant 4.0000 level, the 50-EMA provides a layer of support at 3.9124.

• Mizrahi Tefahot Chief Economist Ronen Menachem expects shekel appreciation trend to continue. He told Globes that "it looks like we are moving towards a limited war that will focus on the south and won't extend beyond the last quarter of the year. The expectation is that the economy can recover from this within a year from when the war ends." Leader Capital Markets Chief Economist Yonatan Katz expressed similar kind of optimism about the way the war in Gaza is shaping.
• The Globes reports that the Bank of Israel has indicated that bank should refrain from dividend payments, although no official guidance has been issued so far. According to the Globes, the BoI's Supervisor of Banks asked lenders during a Zoom meeting to weigh the matter seriously.