Shekel Extends Losses, Lags All EMEA Peers Other Than RUB

Spot USD/ILS gains for the seventh consecutive day, despite fragile greenback sentiment. The rate has added 190 pips and now sits at 3.6911 and it seems that the road is clear to Jun 2 high of 3.7551. If upside momentum wanes, bears would look for a pullback towards the 200-DMA, which kicks in at 3.5557.

• Prime Minister Benjamin Netanyahu said that he would press ahead with the judicial overhaul, but without the controversial "override clause," and with an amended reform of the Judicial Selection Committee.
• While judicial reforms steal the limelight, the Globes ran comments from Lombard Odier Chief Economist, who said that ILS weakness is mainly "a matter of real interest rates combined with inflation" rather than the country's political divisions.
• There is lingering concern over the government's banking bill, which BoI Governor said would undermine the central bank's independence. The bill has been shelved for now, but can still be reintroduced.