FKLI Commentary on 24/11/08

FKLI November contract rose 14.5 points higher compare to previous trading session at 869 with a total of 7756 lots traded in the market.

FKLI was opened lower as Dow Jones plunge during overnight trading session but starts to surge later trading session as regional indices starts to perform well together with Dow Jones futures electronic trading. Technically, FKLI breaks down from a descending triangle where neckline was seen at 863 levels but seems temporary supported at 840 levels; 78.6% Fibonacci retrace figures. Traders were advice to take profit in the coming trading session if FKLI didn’t manage to breach resistance levels at 875 and 885 regions. Supports were seen at 863 and 840 region.

Dollar Posts Weekly Gain as Stock Plunge Spurs Haven Demand

Nov. 21 (Bloomberg) -- The dollar recorded a third weekly gain against the euro as a plunge in global stocks increased demand for the safety of U.S. government debt.
The yen increased versus the euro, the dollar, the Brazilian real and the Mexican peso this week on speculation investors will sell higher-yielding assets and pay back low-cost loans in Japan’s currency. Japan’s Finance Minister Shoichi Nakagawa said today “abrupt movements” in stocks and currencies are undesirable.
“It’s all about risk in this emotional market,” said Jacob Oubina, a currency strategist at FOREX.com, a unit of online currency trading firm Gain Capital in Bedminster, New Jersey. “Risk aversion is still prevalent.”
The dollar traded at $1.2582 per euro at 4:17 p.m. in New York, gaining 0.2 percent from $1.2605 on Nov. 14. The yen was at 95.94 versus the dollar, up 1.2 percent from 97.14. It traded at 120.61 against the euro, increasing 1.5 percent this week from 122.39.
The ICE’s Dollar Index, which tracks the greenback against the euro, the yen, the pound, the Canadian dollar, the Swiss franc and Sweden’s krona, rose to 88.463 today, the highest level since April 2006. It posted its third weekly gain.