USD/ILS: Shekel may be poised for a strong rebound by the end of Q1-2023 – Wells Fargo

FXStreet Insights Team FXStreet

The Israeli Shekel has faced uncharacteristic depreciation pressure over the last few weeks. Looking ahead, economists at Wells Fargo expect ILS to enjoy considerable gains.

USD/ILS to move toward 3.40 by the end of Q1-2023

“Netanyahu defending BOI independence and the increasing likelihood of BOI FX intervention to support the Shekel reinforces our view that the Shekel is on the verge of a strong rebound back and can recover most of recent losses by the end of Q1-2023.”

“While the progress of Netanyahu's judicial reform proposal through parliament could potentially see some further depreciation in the very short-term, current USD/ILS levels are still attractive for investors to gain ILS exposure and for corporates to hedge ILS-denominated expenses.”

“We see merit in entering positions at current levels, and we believe a move toward 3.40 by the end of Q1-2023 is imminent.”

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