Shekel Keeps Testing Cyclical Lows, Moody's Rating Review Eyed Tomorrow

USD/ILS keeps testing the ceiling of its recent trading range, with supportive measures announced by the Bank of Israel earlier this week likely slowing shekel depreciation. The rate last deals at 3.9597, up 87 pips on the session. Familiar technical levels remain intact, with bulls keeping an eye on round figure/Feb 22, 2016 high of 4.0000/4.0035.

• Amir Yaron accepted the government's request to extend his term as Bank of Israel Governor at least until the end of the emergency period related to the ongoing war with Palestinian militants. Yaron's term was due to expire at the of December. His criticism of the government's judicial overhaul plan fuelled speculation that he might not stay on for another term.
• Moody's warned while Israel's "sovereign credit profile has shown resilience to terrorist attacks and military action" in the past, a "prolonged conflict that durably and significantly impairs economic activity and policymaking would test that resilience". the rating agency is due to review Israel's' rating this Friday.
• US Secretary of State has arrived in Israel after Prime Minister Benjamin Netanyahu concluded the formation of an emergency wartime government with opposition's Benny Gantz. In addition, a narrow war cabinet involving Netanyahu, Gantz and Defence Minister Yoav Gallant has been established.