Shekel Struggles Against Its EMEA Peers Amid Widespread Protests

The shekel is one of the worst performers in the EMEA space again, with USD/ILS recouping its initial losses, as a fresh wave of protests against the government's judicial overhaul has engulfed Israel. The rate last sits at ILS3.6280, down 10 pips on the session, and continued recovery would bring Mar 20 high of ILS3.7130 into play. Bears keep an eye on Mar 9 low of ILS3.5669.

• Some 500,000 of people are expected to participate in protest actions against the government's judicial overhaul, with the protesters planning to block highways leading to the Ben Gurion airport ahead of Prime Minister Benjamin Netanyahu's trip to London. A growing number of IDF reservists have joined the protests, with army chief reportedly warning the Premier that pressing ahead with his judicial reforms would worsen the brewing army crisis.
• This comes as the Knesset this morning passed a bill protecting the Prime Minister from a court-ordered recusal by 61 votes to 47, with Netanyahu facing charges of bribery, fraud and breach of trust. The bill was approved in its final reading after a heated debate overnight.
• USD/ILS implied volatilities have pulled back across the curve, with one-month tenor hitting its worst levels in two weeks.