Analysis: Shekel stuck in a narrow range

The currency reached an 11-month high of 4.42 per dollar on May 11, and fell back as low as 4.54 at the end of the month.

By SETH FREEDMAN
June 13, 2006 08:01
1 minute read.
shekels 88

shekels 88. (photo credit: )

 
X

Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later

Since the shekel's meteoric rally against the dollar during April and early May, its movements have become somewhat more subdued. The currency reached an 11-month high of 4.42 per dollar on May 11, and fell back as low as 4.54 at the end of the month. It currently stands at 4.47 - at a crossroads and trading tightly within a narrow band of between 4.49 and 4.45. There is evidently some resistance at 4.45, and until it breaks decisively through this level, serious buying is unlikely to materialize. "[The shekel] is trading in a tight range and, as we head into the summer, the volatility will diminish," said Oli Greenspan, a trader at London-based Hamilton Court Capital. "We would like to see it break through 4.45 before we become buyers." This view also was reflected by analysts at Gift Asset Management. "In the coming weeks we expect... the shekel to trade between 4.45 and 4.50, barring any shocks," they said in a note to clients. From a technical standpoint, there is little to work with at current levels though, with a burgeoning Israeli economy, the fundamentals look positive for the currency. On Sunday the Bank of Israel announced an upwards revision in its estimates for the economy's yearly growth rate, from 4.3% to 5%. News flow like this should bolster investor sentiment in the shekel, though traders will be loath to get involved whilst the current trading range is maintained. Technical analysis is the study of trading based on previous performance, focusing exclusively on price movements rather than the fundamentals of the index/currency involved.

Join Jerusalem Post Premium Plus now for just $5 and upgrade your experience with an ads-free website and exclusive content. Click here>>

Related Content

The Teva Pharmaceutical Industries
April 30, 2015
Teva doubles down on Mylan, despite rejection

By GLOBES, NIV ELIS