The shekel opened mixed against the major currencies this morning. In afternoon trading, the shekel-dollar exchange rate is currently down 0.52% in comparison with Friday's representative rate, at NIS 3.674/$, and the shekel-euro rate is up 0.20%, at NIS 3.891/€.
FXCM Israel says in its market review this morning; "After the shekel-dollar rate sank below the NIS 3.64/$ threshold last week, the lowest level since September 2014, the Bank of Israel decided on Thursday to halt the slide and intervene in trading, and the pair shot up to NIS 3.70. The market's strong reaction, which continued into Friday, could indicate that the move was successful, certainly given the fact that on world markets too, the dollar posted a positive week, following signals from the US Federal Reserve that it might raise its interest rate at its March meeting, a scenario that up to now had been priced as unlikely by the market.
"Federal Reserve chair Janet Yellen joined the chorus of hints on Friday when she said that the US central bank was considering starting to raise interest rates gradually, as far as the economic data permit.
"Investors will therefore be following the economic diary in the US closely this week, which will be full of important macro statistics, headed by the employment report on Friday, which is expected to show 190,000 new jobs added in February.
"Today, another important report will be released: consumer durables orders. Good macro numbers this week will strengthen expectations of an interest rate hike in March, giving the US dollar a following wind, including against the shekel.
"Technically speaking, a rise above NIS 3.70/$, and especially above NIS 3.72/$, could encourage those long on the dollar and boost its positive correction."
Published by Globes [online], Israel business news - www.globes-online.com - on March 6, 2017
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