Shekel Sell-Off Continues, USD/ILS Tests 3.80

USD/ILS remains on a clear uptrend, printing higher highs again. The rate is approaching the 3.80 figure for the first time since the outbreak of the COVID-19 pandemic, while the RSI narrows in on the threshold of overbought territory (albeit it is not quite there yet). Liquidity conditions may be affected by the fact that Israel has already started the weekend, with local stock and bond markets closed as a result.

• With the pair trading +117 pips at 3.7980, a clean break above 3.8000 would give bulls a green light for targeting Mar 17, 2020 high/psychologically significant level of 3.8894/4.0000. On the flip side, a return below Jun 2 high of 3.7551 would give bears some initial reprieve before they seek a deeper pullback.
• The Bank of Israel will publish CPI inflation forecast on Monday (note that this date is given in the Bloomberg calendar and on the BoI's Hebrew-language website, but not on the BoI's English-language website).
• The Times of Israel reported that the government will ask the High Court to delay hearings on the "reasonableness law" after Attorney General Gali Baharav-Miara said that she would not defend the bill in the court room.