Euro Futures Volatility Forecast (23/01/2011)

The last week we forecasted a sharp drop in volatility and a consequent further rise of the price and our forecasts have been confirmed. The staff of HyperVolatility was right once again and managed to predict with great accuracy the hitting of the 1.35 area.

The actual volatility is 0.75% (11.9% annualised) and the great stability that the volatility plot has now indicates that in the upcoming days we will have a further rally of the price which could hit the 1.38 area by the end of week.

However, the Initial Job Claims and the Core Durable Goods Orders data that are going to be released on Thursday could shift things around and increment the volatility driving the price back into the 1,34 area.

The staff of HyperVolatility remains bullish on Euro Futures, at least for this week, and advises you to keep your long positions going since more returns are going to be earned in the upcoming days but special caution is needed on Thursday.

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