The EUR to ILS exchange rate is currently bearish, with the euro trading at 30-day lows near 3.7312.
Key drivers include:
- The European Central Bank (ECB) recently held interest rates steady while signaling concerns that a stronger euro could hinder inflation control.
- Improved geopolitical stability in Israel, particularly following the Gaza ceasefire, has boosted confidence in the shekel.
- Positive growth forecasts for the Eurozone and Israel are also impacting the currencies, with both regions expected to maintain stable economic performance.
In the near term, the EUR to ILS market is expected to remain within a range reflective of current volatility, influenced by recent market data.
Upside risks could arise from unexpected shifts in ECB policy that may favor a stronger euro, while downside risks could come from renewed geopolitical tensions in the region or weak economic data. The fluctuating oil prices, currently lower than their 3-month average, could also introduce further volatility affecting the euro’s value.