Shekel On Back Foot Amid Concern Over Potential "Imminent" Strike By Iran

Spot USD/ILS gains altitude, trying to break above Apr 5 high of 3.7713, which would confirm that the underlying short-term uptrend remains intact, while also opening up key resistance from Jan 17 high of 3.8000. A sustained breach of the latter level would mark the completion of a double bottom patter, setting the stage for a continued recovery. On the downside, immediate focus is on 3.6772/64, which limited losses earlier this week. When this is being typed, the rate deals at 3.7655, around 100 pips higher on the day.

• In local economic developments, the highlight of this week was the Bank of Israel's decision to leave the base rate unchanged at 4.50%, with consensus almost evenly split between a hold and a 25bp cut.
• Elsewhere, a sense of concern with the potential Iranian attack looms large, with Bloomberg reporting that the US and its allies believe that major missile or drone strikes are "more a matter of when, not if."
• Note that Israel's War Cabinet will convene tonight at 19:30 local time to discuss the ongoing negotiations with Hamas (mediated by Egypt and Qatar) as well as heightened tensions with Iran.