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Shekel Weakens Amid Continued Political Turbulence

ILS

Spot USD/ILS trades with a bullish bias today, with PM Netanyahu's far-right coalition partners warning of "consequences" amid reports that Israel approved a delivery of armoured vehicles and/or weapons to the Palestinian Authority.

  • The rate has added 144 pips to last deal at 3.8253, with bulls looking for another attack on Sep 8 high of 3.8612. On the flip side, bears see Aug 24 low of 3.7520 as their initial target.
  • Today's session sees a further upswing in USD/ILS implied volatility, across the maturity curve. One-month tenor has climbed to its highest point since August 23 as political uncertainty remains elevated.
  • Israel's trade deficit was $2.876bn in August versus the revised -$2.752bn prior. Current account balance and CPI will be published on Thursday and Friday respectively.

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