Shekel Stable Near Cyclical Lows Amid Ongoing Crisis

Spot USD/ILS deals at 3.9522, little changed on the day and in the vicinity of yesterday's cyclical highs, with the shekel kept in check by domestic political risk. Bulls continue to seek gains past the round figure/Feb 22, 2016 high of 4.0000/4.0035.

• Reminder that the Bank of Israel announced a plan to intervene in FX markets in order to counter depreciation pressure on the shekel. Globes reminds that "in a press briefing yesterday, [BoI] officials said that the effect of the intervention should not be measured over a single session, but after a few days, during which the bank will review its activity on the market."
• Reports of panic buying at local supermarket chains are doing the rounds after the army instructed citizens to keep emergency supplies of canned food, water, medications and torches.
• Coalition party heads were scheduled to meet at 11:30 local time to discuss National Unity's entry into a "national emergency government", which could be greenlighted in the next few hours.
• Our political risk team wrote about the key points of note for the markets amid the ongoing crisis here and here.