Shekel Ticks Lower Despite Greenback Weakness

USD/ILS snapped a three-day winning streak yesterday and pulled back from a fresh cyclical high to close in the red. However, the rate has inched higher this morning, even as the greenback is struggling. The pair last deals +37 pips at 3.7822 as we type, with bulls looking for a clearance of yesterday's high of 3.8107 before targeting Mar 17, 2020 high of 3.8894. On the flip side, bears need a drop through the 200-DMA at 3.5871 to change the outlook.

• Globes wrote this morning that "the risks to the shekel come from several different directions," including "the judicial overhaul promoted by the government and the protests against it, and the uncertainty about the next steps (...). Among other things, financial institutions in Israel have raised their foreign currency exposure by about 22% over the past year. In addition, the deterioration in the security situation and the murder of three Israelis in Judea and Samaria within a few days are not helping the local currency. Another factor weighing on the shekel is the fact that it is not known who the next governor of the Bank of Israel will be."
• Israel's High Court rejected the government's request to delay a hearing on the "reasonableness" bill. The request was filed by counsel Ilan Bombach, who stands in for Attorney General Gali Baharav-Miara after she refused to represent the government.