⁍ The dollar steadied on Wednesday, down against most currencies, after an initial jump triggered by U.S. President Donald Trump’s cancelling stimulus talks with Democrat lawmakers.

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⁍ Trump’s surprise decision to call off stimulus talks until after the Nov. 3 presidential election initiated a selling spree on Wall Street.

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⁍ Initial shock eased when Trump later asked Congress to extend $25 billion in new payroll assistance to U.S. passenger airlines.

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– President Trump’s decision to delay stimulus talks with Democratic lawmakers until after the November election sent the dollar reeling Tuesday, but it appears to have since stabilized. The AP reports the dollar was down against most currencies early Wednesday, down against most currencies, after an initial jump triggered by Trump’s decision to call off stimulus talks with Democrat lawmakers, increasing demand for safe-haven assets. Trump later asked Congress to extend $25 billion in new payroll assistance to US passenger airlines. The initial shock eased when Trump later asked Congress to extend $25 billion in new payroll assistance to US passenger airlines. US treasury yields fell on Trump’s stimulus message, then crept back up to just below 1.5%, where they stood before the announcement. Yields have been rising and the curve steepening since August on expectation that a Joe Biden presidency would mean a bigger stimulus, inflationary expectations, and a supply of bonds. Sentiment improved overnight in Asia, where markets hit a two-week high and US stock futures made their way back into positive territory a few hours before the open in New York. Stocks in Europe were mostly flat to negative. At midday in Europe, the dollar index =USD was down 0.1% to 93.729. The euro rose 0.26% to $1.1763 per euro EUR=D3, up 0.25%. “The market has largely reversed the spike in volatility and the dollar rally we saw yesterday evening,” says Kit Juckes, head of FX strategy at Societe Generale. “A delay to further fiscal easing until after the election doesn’t scare the markets when Q3 GDP looks so strong.”