The shekel strengthened against the dollar in morning options trading, appreciating 0.54% to NIS 4.1535/$. However, the shekel depreciated 0.2% against the euro to NIS 5.6803/€. Friday’s shekel-dollar representative rate was set at NIS 4.176/$, after rising 0.42%. The shekel-euro representative rate was set at NIS 5.6698/€, after rising 0.39%.
Union Bank predicts that the shekel-dollar exchange rate will range between NIS 4.12/$ and NIS 4.20/$ this week. The closest support level is NIS 4.05/$ and the next support level is NIS 4/$. The closest resistance level is NIS 4.214/$.
Union Bank predicts that the Bank of Israel will raise the interest rate by 25 basis points tomorrow, in view of continuing inflationary pressures. The bank predicts that the Consumer Price Index (CPI) will rise by 0.4% in August, but will fall by 0.1% in September, and again rise by 0.3% in October.
The bank says in its weekly market report, “Despite the rise in the markets, because of the rise in risk we recommend that stocks should comprise 20% of conservative portfolios, and 40% of speculative portfolios.”
The bank also believes that the US housing crisis is not yet over and will probably continue to cause market volatility.
Published by Globes [online], Israel business news - www.globes.co.il - on August 26, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007