Norwegian woes and dark cloud cover

Dark cloud cover is a term used with candlestick charts, like ‘bearish engulfing’ in bar charts, and nothing to do with Ichimoku cloud charts (which I use a lot). The term came to mind because this month the Norwegian krone reached its weakest ever level against the euro, at 10.31. Since January it has depreciated by 6 per cent against the US dollar, just one step behind its Swedish counterpart, which is Europe’s worst-performing currency, losing 8 per cent. These currencies are closely correlated, with a mean regression since 1982 at 1.15 Swedish krona per Nokkie; at 1.05 today, it’s 1 standard deviation below here.

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