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Swiss Franc Futures Volatility Forecast (14/03/2011)

The Swiss Franc futures went through a choppy week and the market is now trading within a narrow range. The week began with a dropping price which, once touched the 107 area, bounced back and closed at 107.6.

The actual volatility is around 0.65% – 0.7% (10.3% – 11.1% annualised) but the plot displays an extremely stable curve which is probably signalling that the down move was just a short term correction and that Swiss Franc futures are ready to head north again.

Furthermore, our readers will already know that the Swiss currency is considered to be a “safe haven” for investors and the great concerns about the earthquake in Japan could push investors to diversify their portfolios with Swiss Franc futures.

The staff of HyperVolatility is bullish on this market and we will place some longs as soon as possible. We believe that the volatility will remain stable and move in a narrow range even during the next week whilst futures prices should hit the 108 – 108.5 area by Friday.

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