The shekel remains strong and determined against the US dollar

Despite the struggling Israeli economy, the shekel remains strong and determined against the US dollar. The pair is bound to hit its support in the first half of June. Bearish investors are brushing off the concerns about Israel’s economy and are focused on taking advantage of the broader weakness of the greenback. Although this week was full of concerning news about the country’s economy. Local reports say that the country’s economy contracted at 7.1% in the first devastating quarter of 2020. The economic fall out surprised the local market as the Bank of Israel previously said that it expects the economy to shrink by 4.5%, and the 7.1% fall is interestingly bigger than projections. Moreover, the Bank of Israel also optimistically said that it sees the economy growing by 6.8% by next year after the coronavirus pandemic. However, USD/ILS investors still note that it’s smaller than previous forecasts of 8.7% growth just last month.