Shekel Under Pressure, USD/ILS Prints New Cycle Highs

USD/ILS has crept higher, tracking gains in the BBDXY index, with the pair printing fresh cyclical highs as a result. The rate topped out at 3.8168 and last changes hands +113 pips on the day at 3.8128. On the topside, technical focus falls on Mar 17, 2020 high of 3.8894. The initial bearish target is provided by Aug 24 low of 3.7520.

• Opposition leader Yair Lapid will travel to the US next week for talks with the White House and State Department officials, even as Prime Minister Benjamin Netanyahu is yet to visit the White House for the first time since taking office 8 months ago. This has now been confirmed by Lapid's office.
• Israel's relations with the US hit another snag as Israel publicly announced a "historic" meeting between Foreign Minister Eli Cohen and his Libyan counterpart Najla Mangoush. Local media outlets reported that the US was "furious" as it expected the meeting to be secret and believes that the incident will deter other countries from normalising their relations with Israel.
• The Globes reported that the government is looking to keep a lid on gasoline prices at the cost of widening fiscal deficit by "hundreds of millions of shekels."
• Looking ahead, the Bank of Israel will announce its rate decision on Monday, September 4.