Shekel Soars As Pressure Mounts On Netanyahu To Pause Judicial Overhaul

The shekel has turned bid after Israeli media outlets reported that Prime Minister Netanyahu and Defence Minister Gallant will both make statements tonight, with Gallant expected to call for a pause to the contentious judicial overhaul.

• Source reports of an alleged conflict between Netanyahu and Gallant were doing the rounds in the recent days as the government's proposed reforms have sparked an intensifying backlash from IDF reservists, which the country's military establishment believes could undermine Israel's deterrence capabilities.
• Spot USD/ILS now trades at ILS3.5575, down 715 pips on the session and we are through key support from Mar 9 low of ILS3.5669. A close below that level would mark the completion of a double top pattern, sending a clear bearish signal. The next technical target on the downside is provided by the 50-DMA at ILS3.5361.
• USD/ILS implied volatilities have tumbled across the curve, with one-month tenor hitting its worst levels since Mar 2.