I was on CNBC Squawk Box Australia last night talking about the outlook for the Japanese Yen as well as the European currencies:  Read More →

We just created a new trading strategy. If you are interested in receiving this FREE REPORT, please sign up by visiting BKForex Advisors and using this link for the Session Based Forex Breakout Trading Strategy  Read More →

My favorite forex trade right now is shorting AUD/NZD. After hitting a 9 year high of 1.3124 last week, the rally in AUD/NZD is losing steam. I should have posted about this earlier, but I think there is still room for the currency pair to fall. Last week, the Reserve Bank of Australia raised interest rates by 25bp to 4 percent but hinted that from here on forward, they will begin to slow …  Read More →

The U.S. labor market report was released this morning and the data was much better than everyone had anticipated. Following the warning from Larry Summers that the storms in the Northeast could have swelled unemployment rolls, investors were bracing for the worst. However disaster was averted and Larry Summers will probably not be forecasting payrolls again anytime soon having embarrassingly …  Read More →

Aside from the fact that Lawrence Summers, who is Obama’s Economic Advisor was a former Treasury Secretary, what does he really know about last month’s non-farm payrolls report? On the eve of the February NFP release, we wonder loudly how accurate his prediction of a snow-storm related bulge in unemployment really is. Earlier this month, Summers came out of no where to warn that “The blizzards that affected much of the country... 

USD/JPY is on a tear this morning following the better than expected jobless claims report. I think traders are relieved that the deterioration in the labor market can officially be blamed on Mr. Frosty because jobless claims have reverted back to pre-snow storm levels. Although I am worried by the sharp rise in the number of people receiving extended and emergency unemployment benefits, that is clearly not what the market cares about right... 

I was on Fox Business this afternoon talking about the overstretched positions in the euro and British pound as well as the outlook for the ECB, BoE and Non-farm payrolls report If the video doesn’t load, watch it here Kathy’s Fox Business Interview Watch the latest business video at video.foxbusiness.com  Read More →

The WSJ and the Financial Times are crediting the drop in the British pound to the upcoming election. Worth a read though I still think that its more than just politics because politics have been in the background for the past few months. If you haven’t read it yet, read my piece on 5 Reasons Why the British Pound is Being Pounded The political debate has also turned darker now that the quagmire that would be caused by a hung Parliament is... 

I was on the Business News Network this morning talking about my reaction to the Australian rate hike, the IMF’s report on Chinese Yuan undervaluation and my outlook for the Canadian rate decision Click on image to access the video  Read More →

I was on CNBC Australia last night talking about the outlook for the Australian dollar and the upcoming RBA rate decision  Read More →

With mixed to slightly better than expected U.K. economic data, traders may be scratching their heads about why the British pound has collapsed more than 300 pips this morning. Here are a couple of reasons: 1. Britain’s Prudential announced plans to buy AIG’s Asia operations for $35.5 billion in cash and stock – since this is partially a cash deal, it will involve selling British pounds. 2. Gilts Losing Luster – According... 

The Financial Times carried a long article yesterday by Peter Garnham on the fears for the future of the dollar carry trade. The key takeaway from the article is that China estimates the dollar carry trade to be $1.5 trillion compared to an $1 trillion that was put into the Yen carry trade (the Yen estimate is not from China but from an independent economics firm). If this is true, then when the…  Read More →

My favorite long term forex trade is short GBP/AUD. From both a technical and fundamental basis, the currency should be headed lower. Based upon the recent trend of economic data including the highest level of unemployment in 12 years and the sharpest decline in retail sales since Feb 2009, the Bank of England should keep monetary policy easy for as long as possible. According to comments this morning, they seem to agree. BoE officials said... 

Guess who is scaling the wall – Yes! Bet you never imagined that Kathy Lien is not only an avid skier but also a rock climber! Just to keep you updated, I’ve been super busy starting work on a new book, preparing to launch some exciting bells and whistles for BKForex Advisor , developing new trading strategies that I am excited to be sharing when I head to Singapore in April and writing for FX360. Don’t worry, I’ll try... 

Burger King’s decision this week to raise the price of a double cheeseburger from $1 to $1.19 and to remove one slice of cheese from the double cheeseburger on its dollar menu (they now call it the BK Dollar Double) is a perfect example of the dilemma that major U.S. corporations are dealing with in the current economic environment. Their costs are going up on the producer level because of higher commodity prices and in a healthy economy,...