Shekel Loses Shine After Seven-Day Winning Streak

Spot USD/ILS has edged higher, snapping a seven-day losing streak as a result, with participants monitoring developments surrounding Israel's paused judicial overhaul. The pair last changes hands +185 pips at ILS3.5636 after rejecting support from its 50-DMA. Bears continue to eye a break below that moving average (last seen at ILS3.5500) after the rate closed below the neckline (ILS3.5669) of a double top pattern yesterday. A breach of the 50-DMA would confirm that bears are taking control, while a close above ILS3.5669 would signal a failure of the double top pattern and shift focus to Mar 20 cyclical high of ILS3.7130.

• Israeli Prime Minister Netanyahu and U.S. President Joe Biden exchanged veiled criticisms in a rare open confrontation. The POTUS said Netanyahu should walk back on his planned reforms and will not receive an invitation to the White House "in the near term," while the Israeli leader responded that his administration won't bow under pressure from overseas. Netanyahu later paid lip service to the "unshakable alliance" with the U.S. but an unnamed Likud official told the Srugim news website that he is convinced that Biden will lose to a Republican contender in the next election.
• Elsewhere, the Bank of Israel will announce its monetary policy decision on Monday. The Base Rate currently sits at 4.25%.