Shekel Tad Weaker, Diplomatic Developments Under Microscope

Spot USD/ILS has inched higher and last changes hands at 3.8209, up 148 pips on the day, with bulls keeping an eye on 3.8612, which capped gains on Sep 8. On the downside, the initial target is provided by Aug 24 low of 3.7520.

• Foreign Minister Eli Cohen hinted at Israel's possible imminent admission to the US Visa Waiver Program, albeit Washington quickly called the declaration "premature" and said that the appropriate decision will be made "in the coming days". Channel 12 reported that US officials were fuming at Cohen's announcement, but the decision is unlikely to be affected by the incident.
• Meanwhile, efforts leading to the normalisation of Israeli-Saudi relations continue, with a Saudi delegation expected to visit the West Bank this week to hold talks with the Palestinians.
• Israel's leading indicator rose 0.07% in August versus the revised +0.04% in July, according to the latest update from the Bank of Israel.