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Swiss Franc Futures Volatility Forecast (07/11/2010)

The retracement we were talking about 2 weeks ago is really happened and it is clearly highlighted by the big rally that volatility had from 0.5% to almost 1% (which is the value we forecasted the last week).

However, the staff of HyperVolatility suggests to remain bullish because such a retracement, in our opinion, is just a confirmation of the up trend that this market is experiencing.

Visibly, the volatility reverted to its mean and this could signify that the upward movement is still strong. If the volatility remains stable between 0.5% – 0.7% the bull market should continue without heavy drops.

Furthermore, this week has been quite interesting with the interest rates and the QE2 programme announcements and this could potentially undermine the robustness of the uptrend but it appears that investors preferred to play safely and keep buying Swiss franc futures.

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