USD/ILS Refreshes Cyclical Highs, CPI Forecast Eyed

Spot USD/ILS extends recent gains, refreshing cyclical highs as a result. It last deals +82 pips at 3.7790 after peaking at 37819. The next target for bulls is 3.80, a move through there would expose Mar 17, 2020 high of 3.8894. Bears set their sights on Aug 2 low of 3.6258, followed by the 200-DMA at 3.5816.

• The government announced that representatives of the IDF, civil service, Defence Ministry, Finance Ministry and Justice Ministry met to discuss the proposed draft bill, with Haredi parties threatening to break the coalition if the legislation is not approved immediately after the Knesset's summer recess.
• The coalition's whip Ofir Katz confirmed that the government is planning to pass the draft bill first and then resume legislative works on the judicial overhaul. Earlier reports suggested that this was the Haredi parties' preferred order of business.
• Citing "trend-like growth, soft domestic demand, cooling housing and tech sectors, slowing inflation, and quieter politics," JP Morgan expect the BoI to "start cutting rates from 2Q24," with risks "looking skewed toward an earlier beginning of policy easing (1Q24).
• The Bank of Israel should publish its CPI forecast later today, according to a schedule on its website (note that the date in the Bloomberg calendar has been changed to August 21).