Swiss Franc Futures Volatility Forecast (13/11/2010)

The staff of HyperVolatility was right again!!! The retracement expected in the Swiss Franc Futures market really happened.

The TGARCH plot shows a sudden increase in volatility which clearly backed the drop in the market. Also, it has to be pointed out that the adjustment is probably at the initial stage,hence, it would not be surprising to see prices falling in the 90 area with volatility readings close to 1.3 % – 1.5% (20% – 23% annualised).

The dollar will probably tend to appreciate but the majority of  investors seeking for security and stability before the end of the year will shift their investments towards this market.

On the other hand, many people during uncertain financial times prefer depositing their money in safe heavens like Switzerland and therefore it is likely for the Swiss Franc Futures to keep ralling. The staff of HyperVolatility is bearish in the very short term but remains bullish in the long run. A buy and hold strategy would probably prove to be the most profitable one.

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