Shekel See-Saws Amid Reports On Intra-Coalition Dynamics Surrounding Judicial Overhaul

Spot USD/ILS reversed earlier gains and moved into negative territory, possibly coming under pressure as aforementioned reports on a potential judicial overhaul freeze got some broader airing. The rate then found a base at 3.7246 and recovered from there alongside the BBDXY index, returning close to neutral levels. It last sits at 3.7519, marginally lower on the day, with familiar technical levels in play.

• Likud and United Torah Judaism (UTJ) leaders denied reports suggesting the Prime Minister Benjamin Netanyahu was seeking a one-year freeze of his judicial overhaul to legislate for military draft exemptions for Haredi men.
• Ynet ran a separate source report noting that the UTJ are demanding that the conscription law is advanced before the resumption of the judicial overhaul, while it was Shas who called for ensuring wider consensus around the judicial reforms.
• Note that the Knesset will convene for a special session tomorrow, pausing a recess lasting until October 15. The key thing to watch is a bill on IDF salaries amid the ongoing turmoil surrounding the potential amendments to draft regulations and anti-overhaul sentiment in IDF ranks.