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British Pound Futures Volatility Forecast (22/11/2010)

There is a mismatch between the TGARCH plot and the lastest market movements which suggests that more volatility is expected. In fact, the actual TGARCH plot displays readings around 0.5% (8% annualised) and therefore it is quite reasonable to believe that the downward movement is not over yet.

The British pound is likely to depreciate against the dollar and the recent announcements regarding the Irish debt problems could scary investors away from UK.

We suggest to look at the short side of this market and to watch out your long positions because the price could easily drop to 157-158 by the end of the week

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