Options trading is pointing to a 0.2% drop in the shekel-dollar exchange rate to NIS 4.24/$, and to a 0.3% drop in the shekel-euro exchange rate to NIS 5.6146/€. There is no inter-bank foreign currency trading on Sundays.
Union Bank analysts expect the Bank of Israel to keep interest rates unchanged in the near term, and to raise the interest rate in the medium term.
In foreign currency trade, the analysts see a support level at NIS 4.17/$, with the nearest resistance level at NIS 4.245/$, and a further resistance level at NIS 4.337/$.
In Union Bank's weekly review, its analysts say, "Stock exchange trading in the near term will continue to be influenced by the wave of financial reports from companies around the world, as well as the upcoming results of the stress tests of US banks."
Leader Capital Markets also expects no change in the interest rate in tomorrow's Bank of Israel's decision, following March's high Consumer Price Index (CPI) reading and increased inflation expectations. Nonetheless, Leader analysts say that worries of future inflation are overdone, as the recession continues to deepen.
On Friday, the Bank of Israel set the representative shekel-dollar exchange rate 0.449% higher at NIS 4.248/$, and set the representative shekel-euro exchange rate 2.058% higher at NIS 5.6322/€.
Published by Globes [online], Israel business news - www.globes-online.com - on April 26, 2009
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