British Pound Futures Volatility Forecast (06/02/2011)

The staff of HyperVolatility advised you to look at the short side of the market and after a temporary rally which made the volatility to plunge the price closed at 160.98 on Friday.

The last one was a quite choppy week for British Pound futures because although the volatility achieved 0.6% (9.5% annualised) it then unpredictably plummeted to 0.43% (6.8% in annual terms) but at the end of the week it reverted and achieved 0.51% (8.09% annualised). The TGARCH curve is now upward sloping and therefore an increment in market fluctuations should be expected in the short term, however, the raise is simply an attempt to get back to the equilibrium level set around 0.56% (8.8% in annual terms) and should be interpreted carefully.

The staff of HyperVolatility suggests you to look for short opportunities but only for the first next days since the futures should touch 159.5 – 160 but the price should then bounce back and test the 161 area again.

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