By Julien Ponthus
LONDON, Oct 7 (Reuters) – The dollar steadied on Wednesday, ticking down against most currencies after an initial jump triggered by U.S. President Donald Trump cancelling stimulus talks with Democrat lawmakers, a move which increased demand for safe-haven assets.
Trump’s surprise decision to call off stimulus talks until after the Nov. 3 presidential election initiated a selling spree on Wall Street with investors bracing for fresh downside risks for an already shaky U.S. economy.
The initial shock from the announcement eased when the U.S. President later asked Congress to extend $25 billion in new payroll assistance to U.S. passenger airlines.
Sentiment improved overnight in Asia where markets hit a two-week high and U.S. stock futures made their way back to positive territory.
All in all, analysts said the renewed uncertainty over stimulus would encourage investors to trade riskier currencies cautiously.
“This is set to reinstate caution