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Shekel Halts Losses, BoI Minutes Eyed

ILS

Spot USD/ILS snaps a four-day winning streak, with the pair struggling to break above the previous day's highs. The rate last changes hands at 3.7528 and bears look for a firmer pullback, initially through the 200-DMA (3.7448) and 50-DMA (3.7261) and then towards Jun 4 low of 3.6521. Bulls continue to eye resistance from Apr 26 high of 3.8274.

  • Benny Gantz left Israel's war cabinet and called for a snap election, accusing Prime Minister Benjamin Netanyahu of mishandling the ongoing war against Hamas. The Netanyahu-led coalition maintains a slim majority in the Knesset, but the departure of Gantz shifts the centre of gravity in the cabinet to the right. Netanyahu's far-right ally Itamar Ben Gvir requested being offered Gantz's seat in the three-member war cabinet, which also includes Netanyahu and Defence Minister Yoav Gallant.
  • The Bank of Israel will today release the minutes of monetary policy meeting held on May 27. During that meeting, policymakers decided to leave the key policy rate unchanged at 4.50%.

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