Citi expects Israel's shekel to strengthen vs euro in coming weeks

LONDON, Oct 6 (Reuters) - Citi said on Monday it expected Israel's shekel currency to strengthen against the euro as markets assess ceasefire potential for the near-two year war in Gaza.

"We think, the shekel could be in for another leg of appreciation over the next couple of weeks, as markets assess the potential of a successful ceasefire deal," said Citi's Luis Costa.

U.S. President Donald Trump has promoted a 20-point plan aimed at ending the fighting. Hamas officials arrived in Egypt on Sunday ahead of talks with Israel that the U.S. hopes will lead to a halt in fighting and the freeing of hostages in Gaza.

"While we observe potential stumbling blocks, the influence of the White House could pave the way towards a deal."

They said they thought the Bank of Israel would be reasonably comfortable with prospects of further Shekel appreciation.

Citi set a target of EURILS at 3.70. The Israeli currency currently stands at 3.826 to the euro, according to LSEG data. EURILS=