Shekel Holds Ground as US Dollar Gains 1% Following Election Trading
The Israeli shekel maintains relative resilience as the US dollar gains 1% globally following election-driven speculative trading and subsequent position unwinding.
The Israeli shekel is maintaining relative strength despite the US dollar gaining more than 1% globally, according to Yossi Frank, CEO and owner of Energy Finance.
Speaking to the press, Frank explained that speculative activity driving the shekel's strength began on Monday due to options expiry moving forward ahead of election day. The shekel surged from 3.12 to 3.075 per dollar, defying global trends as foreign players bet on election outcomes.
However, once actual results emerged, positions were unwound, causing sharp market movements. Looking ahead, Frank noted that political deadlock could cause the shekel to consolidate in a holding pattern.
Market trajectory will continue to be dictated by familiar macroeconomic factors: interest rate differentials between the dollar and the shekel, developments concerning Iran, and the performance of US stock exchanges.
