Trump could be dragging the trade war until the 2020 US elections before withdrawing to boost vote numbers. Gold could potentially rise higher as risk-off sentiments continue to increase.
With risk sentiment shifting towards risk-off, a stronger NFP will only provide a better short entry. USD/JPY could break critical support at the 106.80 price level.
China is likely to retaliate if the tariffs were to go into effect, which could cause funds to flow into safe havens. Gold could resume its uptrend.
As Fed’s cut is most likely a preventive move and insurance against risk, Fed may not open doors for additional easing. USD/JPY could fall initially after rate cut is announced before rising.
Odds of a no-deal Brexit increased after PM Johnson said he will not meet EU leaders unless they shift their Brexit position. With GBP/USD hitting a 2016 low, we could expect some retracement after Fed cuts rates this week.