Shekel Inches Higher As Broader Selling Pressure Moderates

Spot USD/ILS oscillated between gains and losses, printing a new cyclical high of 4.0971 in the process, but last changes hands at 4.0558, down 73 pips on the session. Bears look for a pullback from there, initially towards the 4.00 mark. Bulls eye resistance from Jul 26, 2012 high of 4.0980 and the 4.10 figure.

• War-induced shekel sell-off has moderated in the recent days, while Mizrahi Tefahot Chief Economist Ronen Menachem told Globes that most scenarios on the impact of war on the economy "estimated that the more likely scenario is for a limited war in the south over three months, which would allow the economy to recover within a year from the end of the war".
• Defence Minister Yoav Galland announced the second stage of war against Hamas, which he expects to involve expanded ground activity and last for months. The IDF said that it pushed further into the Gaza Strip, striking a number of Hamas targets.