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Shekel Outperformance Returns

ILS

Spot USD/ILS has resumed losses after yesterday's uptick and last deals at ILS3.5699, down 264 pips on the session. The rate is approaching key support from Mar 28 low of ILS3.5287, located just shy of the 200-DMA (ILS3.5446) and the 38.2% retracement of the Aug 2022 - Jun 2023 rally (ILS3.5382). On the flip side, gains past Jun 2 high of ILS3.7551 are needed to suggest that bulls are taking the driving seat again.

  • Yisrael Beytenu leader Avigdor Liberman said that fellow opposition parties will likely agree to some of the coalition demands in the judicial overhaul talks in exchange for a seat on the panel selecting judges, although he "personally intends to do everything possible to stop this." His comments fall in line with earlier reports suggesting that such a deal could be taking shape.
  • Israel's trade deficit narrowed to $2.433bn in May from a revised $2.529bn prior. The focus turns to current account balance (tomorrow) and CPI (Thursday).

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