Bearish ILS Call Plays Out…. Eventually

May 2007 | Market Strategy

Our call for a shekel correction on the back of dollar strength is starting to come to fruition, albeit almost three weeks after we first made it (see Currency Forecast - Short Term Correction Ahead, But Long Term Bullish, May 7). The unit is now trading at ILS4.0305/US$, having retraced from its recent high of ILS3.9170/US$. Although we emphasise that we remain long-term shekel bulls, we stand by the ILS4.15/US$ short-term target we set in our last currency forecast. This area will be a key test: a breach of this support could well see the shekel dip further to ILS4.25/US$,

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