Swiss banking giant, UBS, put out a call that was negative on the Shekel. The bank said that while they believe Israel wont slip into a recession, and will continue with positive GDP growth, that growth will be much slower than in previous years, and that will adversely impact the Israeli currency.

According to a Jpost report: “The shekel traded near a one-month low against the dollar after Roderick Ngotho, a UBS strategist in London, wrote that Israel is “facing both internal and external pressures,” and may feel the “most pain during this year’s global recession.  We expect the US to register a recession this year and though we do not expect Israel to be in recession, we anticipate very low growth at 1 percent this year, the lowest in seven years,” he wrote in a note to clients. “We remain negative on
the shekel.”

Maybe so, but positive growth sure looks good these days.

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