Shekel Outperforms Despite Negative Revision To Israel's Credit Rating Outlook

The Israeli shekel leads the EMEA pack and is one of the world's best performing currencies today, with USD/ILS shedding 341 pips so far to fully erase the previous day's gains. This comes even as Moody's revised Israel's credit rating outlook to stable from positive, with participants awaiting BoI minutes.

• The rate last deals at ILS3.6392 and bears look to force a move through the 50-DMA (ILS3.6043) as they set their sights on Mar 28 low of ILS3.5287. Bulls need a rally above Apr 12 high of ILS3.6934 and Mar 20 high of ILS3.7130 to prove that they still have the upper hand.
• Finance Minister Bezazel Smotrich played down a downgrade to Israel's credit rating outlook announced by Moody's late on Friday. The ratings agency cited a "deterioration of Israel's governance," while Smotrich told lawmakers that he doesn't think "economists are great experts in constitutional, judicial law."
• The Bank of Israel will publish the minutes of its most recent monetary policy decision later today. As a reminder, the MPC raised interest rates by 25bp earlier this month, while warning against the adverse economic consequences of the government's judicial overhaul plan.