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Shekel Remains Fragile Amid Domestic Political Concerns

ILS

Spot USD/ILS continues to operate close to its cyclical highs printed earlier this week at 3.8753. The pair last sits at 3.8651, up 46 pips on the session, with bulls looking for a move through its recent highs and towards Mar 17, 2020 high of 3.8894. Conversely, bears eye Aug 24 low of 3.7520 for initial support.

  • Political risk has remained front and centre this week amid renewed concerns over teh government's controversial judicial overhaul plan and continued tensions within the ruling coalition. The Knesset will be back from recess on October 16, at which point turmoil surrounding the judicial overhaul and the push of PM Netanyahu's junior coalition partners for Haredi military draft exemptions may resurface.

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