Euro Futures Volatility Forecast (22/11/2010)

The Euro futures market is still experiencing a sideways movement and the TGARCH volatility plot clearly displays the absence of upward volatility explosions.

On the other hand, volatility readings around 0.8% (12.5% annualised) are still too low and we believe that an imminent augment could drive the market down in the 1,25 area.

The great concerns about Ireland and Portugal could push investors towards safer investment solutions (read dollars) causing a sudden raise in volatility and a consequent drop of the market.

The staff of HyperVolatility strongly suggests you to sell your long positions and stay away from this market until sovereign debt fears will diminish.

Leave a Reply

Your email address will not be published. Required fields are marked *

Go back to top