The USD/ILS is near the 3.08475 ratio as of this morning with a wide spread being seen, this as the broad Forex market continues to be hyper-volatile and financial institutions react.
The USD/ILS continues to demonstrate an ability to make technical support levels appear vulnerable. As of this writing the USD/ILS is around 3.08475. However, readers are urged to compare this written value to current market values as they participate in the markets. The USD/ILS has correlated to the broad Forex market, but also continues to show the Israeli Shekel is extremely strong.
The last time the USD/ILS was within the current realms it is now traversing was in 2021. And that is only part of the story, the USD/ILS is within historically strong price ratios. The Israeli Shekel is within ground it has not swam against the USD since the 1990’s in a sustained manner.
Top Regulated Brokers
Fundamentals and Correlations of the USD/ILS
Certainly risk premium has been fully discounted in the Israeli Shekel following the war with Hamas which started in October of 2023. There is a threat of the Iranian situation sparking, but financial institutions obviously remain quite calm about its implications for the time being. The weakness in the USD in the broad Forex market is a definite consideration. The past handful of days have seen widespread selling of the USD against major currencies.
The USD/ILS around the 3.08475 mark thereabouts looks very strong for the Israeli Shekel. Can the USD/ILS go lower? There is no law against it, but the question is how low will the Bank of Israel allow the currency pair to move? At some point the Israeli Shekel might be seen as being to strong which could become problematic. However, the ability to move below the 3.10000 was accomplished almost two days ago and sustained price action beneath this level has now been accomplished, except for a brief spike outlier yesterday.
Near-Term USD/ILS and Speculation
The downside of the USD/ILS has been very sustainable for a while. Speculators who are looking to fight against the trend need to be careful.
- Yes, at some point it is likely the USD/ILS may face some type of intervention from the Bank of Israel, but it would probably be a limited maneuver.
- The Israeli Shekel isn’t a high volume currency and is prone to large imbalanced orders.
- Forex action in the pair is quite limited and traders need to be careful about intraday moves and particularly the wide spread now being seen.
- The USD/ILS around 3.07000 and 3.06000 levels may be acceptable for financial institutions.
- And as always, if the USD does show a sudden reversal and gains strength, this might cause the USD/ILS to bounce upwards.
Ready to trade our Forex daily forecast? We’ve made a list of some of the best regulated brokers in Israel to choose from.