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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
ILS
USD/ILS has edged higher today, building on its gains from the past two days, as the spot rate diverges from a sharp pullback in implied volatilities (see chart below). The pair last deals at ILS3.6574, up 50 pips on the day.
- Technically, a clearance of Apr 12 high of ILS3.6934 would allow bulls to set their sights on Mar 20 cyclical high of ILS3.7130, their key near-term target. Bears look for a slide through the 50-DMA, which kicks in at ILS3.6164.
- USD/ILS 1-month implied volatility has receded sharply over the past few days, reaching levels last seen in mid-February. One-year tenor has eased to its worst levels since mid-March after refreshing cyclical highs on Apr 18.
- Israel's Economy and Industry Minister Nir Barkat yesterday said that the economy could withstand any short-term impact from Moody's recent decision to lower the country's credit rating outlook amid uncertainty caused by the contentious judicial overhaul plan.
- Note that Israel observes the weekend on Friday-Saturday, with local markets already shut as a result.
Fig. 1: USD/ILS vs. USD/ILS 1-Month Implied Volatility
Source: MNI - Market News/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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