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Euro Futures Volatility Forecast (31/10/2010)

The Euro Futures volatility is constantly decreasing even if some signs of weakening seem to threat the upward movement.

The Euro Futures is now trading sideways but we think that the up trend is losing momentum and a retracement is about to happen in the market. In fact, the volatility increased since October began even if its growth has not been constant so far.

The next week the announcements about interest rates in EU and USA and the NonFarm Unemployment figures will be important market movers that surely will shake this market.

The staff of HyperVolatility suggests not to take any long positions on Euro Futures for 2 simple reasons:

1) USA economic situation is recovering at an higher pace than the European one (even if the word recovery is a bit inappropriate since we do not see yet good macro data which could back a robust take off )

2) The Euro is likely to depreciate against the US dollars because many people still consider the last one a sort of safe heaven for their investments and the approaching of the end of the year will push more and more traders and investors towards the seeking of security rather than further last minute returns

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