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Swiss Franc Futures Volatility Forecast (19/12/2010)

Swiss Franc futures moved higher the last week and the buy and hold strategy we suggested you to implement proved quite profitable.

The volatility returned to its long-term equilibrium point which is 0.7% (11.1% annualised) but the end of the plot seems highlighting a rise in market fluctuations in the short term. In fact, after the great rally that the Swiss Franc had over the last 20 days a short term retracement could sensibly drive the price towards the 102 area.

Market volatility is expected to rise during this week even if the augment will not be sharp or violent. Specifically, we should see figures around 0.8% (12.6% annualised) accompanying the price action in the 102.5 zone.

However, the staff of HyperVolatility is still bullish on this market and we advise you not to worry too much about this week because in the long run the Swiss Franc should keep appreciating against dollars.

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