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Shekel Stays Afloat, Gaza Situation Under Scrutiny

ILS

USD/ILS has now moved away from its session lows printed at ILS3.6216 and last trades at ILS3.6365, down 57 pips on the day. Technically, sales past yesterday's low of ILS3.6049 would open up Apr 4 low of ILS3.5603 and Mar 28 low of ILS3.5287. On the topside, the focus falls on Apr 12 high of ILS3.6934 and Mar 20 high of ILS3.7130.

  • Implied volatilities are slightly higher across the curve, albeit within the confines of yesterday's ranges, save for the overnight tenor which showed at its best levels in a week.
  • Israel reached a truce with the Palestinian Islamic Jihad following a flare-up in violence across the Gaza Strip overnight. The ceasefire drew criticism from a far-right junior coalition party Otzma Yehudit, whose lawmakers are boycotting Knesset votes today.

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