FXCM Israel: The fall below NIS 3.94/$ suggests a broader correction downwards with the next target NIS 3.90/$.
The shekel was strengthening steeply in morning inter-bank trading today against the dollar but weakening against the euro in line with the US currency's weakness on global markets. The shekel-dollar exchange rate is down 1.3% at NIS 3.913/$ compared with yesterday's representative rate, and the shekel-euro rate is up 0.77% at NIS 4.365/€.
Yesterday, the Bank of Israel set the shekel-dollar representative rate up 0.228% from Tuesday's rate at NIS 3.964/$, and the representative shekel-euro rate up 0.338% at NIS 4.332/€.
FXCM Israel said in its morning survey, "The extreme volatility of oil prices and dollar trading on global prices continues and last night this pushed the shekel-dollar rate below NIS 3.92/$ before recovering slightly to NIS 3.93/$. The fall below NIS 3.94/$ suggests a broader correction downwards with the next target NIS 3.90/$. The dollar was harmed yesterday by new figures showing a fall in growth in the manufacturing sector, which represents two thirds of economic activity in the US.
Published by Globes [online], Israel business news - www.globes-online.com - on February 4, 2016
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