Shekel Fluctuates As Historic Court Case Kicks Off

Spot USD/ILS has oscillated between gains and losses today with participants weighing the risks posed by a landmark High Court case against rumours of a potential compromise surrounding the government's judicial overhaul. The rate last deals at 3.8030, 87 pips higher on the day, with Sep 8 high of 3.8612 providing the initial layer of resistance.

• The full bench of the High Court is considering petitions against the government's "reasonableness bill", which the government says cannot not be scrutinised by the top judicial body. The case puts Israel on the brink of a constitutional crisis, which could ensue should the High Court decide to try and strike down the "reasonableness law".
• Meanwhile, there has been talk of a potential compromise over the judicial overhaul, with one of opposition leaders yesterday noting that he could agree to a deal if it "preserved democracy".
• Separately, Prime Minister Netanyahu appeared to have kicked the can down the road when it comes to the potential re-appointment of BoI Governor Yaron. The two officials decided to make the decision after the Jewish holidays.