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Euro Futures Volatility Forecast (27/02/2011)

We remained flat on Euro futures because we were waiting for volatility to settle before deciding which side of the market to ride.

The price touched 1.36, topped at 1.38 and then plummeted at 1.37 whilst the volatility decreased to 0.75% (11.9% annualised) although Euro futures failed to break through the 1.38 resistance level.

The TGARCH plot is now clearly downward sloping and therefore it is likely for the price to increase and achieve the 1.384 area by the next Friday.

The staff of HyperVolatility is bullish on Euro futures because the US dollar should keep on depreciating in the next trading days pushing investors to get rid of greenbacks to favour the European currency.

This market will be at the centre of attention because the US macroeconomic news could move the market quite significantly.

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