Goldman Sachs Israeli Shekel Forecast: USD/ILS To Rebound From 3.10 - Exchange Rates Org UK

What the desk is arguing

Goldman Sachs projects that the USD/ILS will rebound from its current position at 3.10, suggesting a strengthening of the dollar in the coming months. This outlook is based on signs of increasing demand for USD as investors react to evolving economic indicators and geopolitical developments.

The underlying rationale hinges on several factors, including anticipated economic growth in the US and potential political instability in the region that may drive investors towards safer assets like the dollar. Goldman appears to reject any narratives suggesting sustained weakness in the dollar due to recent sentiment shifts or short-term volatility in currency markets.

Where it sits in our coverage

Our consensus target for USD/ILS stands at 1.075, with a firm spread from 1.04 to 1.12. Goldman’s outlook aligns with a bullish perspective on the USD, diverging from some market participants who hold a more cautious view in light of potential local economic challenges.

Among our per-firm coverage, we note specific targets: - JPMorgan: 1.10 by Mar-26 - Barclays: 1.08 by Mar-26 - BofA: 1.04 by Mar-26

How other firms see it

Other firms exhibit a mix of alignment and skepticism regarding the bullish stance on the USD. Firms such as JPMorgan and Barclays support the view of a strengthening USD against the shekel, whereas BofA holds a contrary outlook, suggesting a more cautious approach.

• JPMorgan: aligned
• Barclays: aligned
• BofA: contrary