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The biggest story this week was perhaps the easing of trade wars as China apparently blinked first in its dispute with the US.

Thanks to positive risk sentiment, consistent improvement in UK data and growing optimism over a Brexit deal, the GBP/JPY has risen about 900 pips from its low of just under 140 in mid-August.

The SNB was surprisingly relaxed about the currency’s recent strength, once again describing the franc as merely being "highly valued."

There was a central bank meeting today, but you’d be excused for not noticing.

The biggest story in the markets right now is that China seems to have blinked first in its trade dispute with the US. Global stock markets, led by China, and base metal prices have all staged a relief rally as a result.

The pound got another shot in the arm after the latest measure of consumer inflation was released this morning, which revealed a surprisingly strong reading for the month of August.

Last week, we highlighted the bearish head-and-shoulders pattern forming on the US Dollar Index (see “Dollar Index Head-and-Shoulders Pattern in Play After Weak Inflation Data” for more). With the euro making up nearly 60% of the dollar index, it’s not surprising that a similar, inverted head-and-shoulders pattern is forming on EUR/USD, as we’ll see...

Remember THAT bullish breakout in the USD/CAD from the bearish channel on September 4? Well, that turned out to be a massive bull trap!

It has been another volatile day in the equity markets as the tit-for-tat bilateral tariffs between China and the US continued. As we go to press, US stock index futures were at their best levels on the day and Europe was also on a recovery mode.

We’ve been tracking the regular drumbeat of Brexit headlines and as we noted last week (see “GBP/USD Back Above 1.30 as Barnier says Brexit Deal “Realistic” in 6-8 Weeks” for more), the tone of the public comments has suggested that a deal is growing more and more likely as the talks enter crunch time.

Despite the sharp sell-off in US technology sector, European stock indices were still trading mixed at the time of writing.

Political headlines and trade fears are dominating the headlines in today’s North American session, leading to a slight risk-off tone despite a positive open for risk assets. As a result, we’ve seen the US dollar, Japanese yen, and Swiss franc ascend to become the strongest major currencies on the day after bringing up the rear through the first fou...