The shekel continues it weakness against the euro, and is also weaker against the dollar in morning trade.
The shekel-dollar exchange rate is up 0.44% to NIS 3.7553/$, and the shekel-euro exchange rate is up 0.76% to NIS 5.1092/€.
This evening the Central Bureau of Statistics will release Consumer Price Index (CPI) figures for January. Analysts generally expect the CPI to have fallen 0.3% in January, though Excellence Nessuah chief economist Shlomo Maoz forecasts a sharp 0.6% drop in the index.
Barclays Capital analysts, in a report on emerging market technical analysis, say that the shekel's strength recently against the dollar "stands out like a sore thumb" when the dollar is rallying strongly against emerging maket currencies. They say that a three wave rally off the January low is losing momentum and points to shekel appreciation over the rest of the month.
The Barclays analysts expect the shekel-dollar exchange rate to top out below NIS 3.78/$. A drop below trendline support at the NIS 3.70/$ level will signal a move toward the NIS 3.65/$ level or even lower, in a retest of key long-term support.
On Friday, the Bank of Israel set the shekel-dollar representative exchange rate unchanged at NIS 3.739/$, and set the shekel-euro representative exchange rate at NIS 5.0708/€, 1.119% lower than the day before.
Published by Globes [online], Israel business news - www.globes-online.com - on February 15, 2010
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