Interview: Trading The Headlines With Kathy Lien by Jayanthi Gopalakrishnan
Kathy Lien is managing director of FX Strategy for BK Asset Management and cofounder of BKForex.com. Lien has more than 19 years of experience in the financial markets with a specific focus on G20 currencies. Her career started at JPMorgan Chase, where she worked on the interbank FX trading desk making markets in foreign exchange and later in the cross-markets proprietary trad-ing group where she traded FX spot, options, interest rate derivatives, bonds, equities, and futures. In 2003, she joined FXCM and started DailyFX.com, a leading online foreign exchange research portal. In 2008, Lien joined Global Futures & Forex as director of currency research, where she provided research and analysis to clients and managed a global foreign exchange analysis team. As an expert on G20 currencies, Lien is often quoted in The Wall Street Journal, Reuters, Bloomberg, and other leading news publications. She also appears regularly on CNBC and on Sky Business. Her extensive experience in developing trading strategies using cross-markets analysis and her edge in predicting economic surprises are key components of BK’s analytical techniques.
STOCKS & COMMODITIES Editor Jayanthi Gopalakrishnan spoke with Kathy Lien on September 18, 2018 about what current events are affecting the markets.
Kathy, the last time we spoke to you was in July 2012. A lot has happened since then, but more important, there’s a lot going on globally—the tariffs, Brexit, Canada-US trade relations. In your view, how do these events impact the currency markets?
First and foremost, there’s a significant amount of headline risk in the currency markets these days. We’ve seen volatility increase significantly and you can translate that into a lot of unexpected intraday increases in trading ranges and general volatility. So that’s the new norm that a lot of investors have to adjust to, which is that stops need to be wider as a result of all these headline risks ...