Hiding in Norway has proven to be less safe than hoped. EUR/NOK is exploding, having broken out of a beautiful bearish consolidation and overcome major resistance in the 7.6350/00 area.
I warned against using NOK as a safe-haven last week (in comments) as it is easy to get in but hard to get out (I learned the hard way)… Now you know why.
In the bigger picture, we are getting a sort of pre-Lehman vibe today. Hedge funds are selling winners Gold, NOK) to fund losers else where. There could also be a general squeeze on liquidity to the leveraged sector, just as was the case in 2008.
