The U.S. dollar reportedly continued to maintain gains against most major currencies on Wednesday. This comes after Republican US President Donald Trump abruptly canceled talks on economic stimulus with Democrats. That was a truly surprising decision made by him.

Previously, many currencies were calm and stable after Trump returned to the White House from the hospital. That's where he received treatment for the coronavirus. Trump was allowed to return to the white house. That was said by his doctor since he was getting better.

Trump's surprise decision to cancel stimulus talks until after the November 3 presidential election was surprising. That could potentially increase the risk of a downturn for an already faltering U.S. economy and would likely support the safe flow of assets into the dollar.

Will the U.S. Economy Slow Down?

The reaction to the decision was a type of risk-off trade to buy dollars and yen against other currencies. Here's what Masafumi Yamamoto, chief currency strategist at Mizuho Securities, said. Without additional stimulus, the U.S. and the global economy can become slow.

The dollar last stood at $1.1738 per euro. The currency gained 0.4% in the previous session. The British pound was at $1.2869. It happened after it was slipping 0.86% on Tuesday. This increase is based on several reasons that happened in the market.

One of them is optimism about the UK's trade negotiations with the EU. It was failed to protect the sterling from a rising USD. That USD was bought at 0.9179 Swiss francs. That was happened after rising by 0.3% before. However, it could be volatile.

On Tuesday, President Trump through this twitter decided to break off talks about an aid package with the Democrat. The decision was still taken despite increased U.S. viral cases. It could bring a dangerous threat to the economic outlook.

The Fed Chair's Opinion

Related to that controversial decision, Federal Reserve Chairman, Jerome Powell, warned that America’s economy could fall down if the coronavirus is not effectively controlled. He also suggested asking for more economic help to protect the financial cycle in that country.

Market participants will now monitor the Fed's latest meeting and comment from some of its speakers. It is mainly for further signs of how the central bank views the outlook for the future. What they decide will have an effect.

For information, Trump had just returned to work on Monday after three nights hospitalized. The situation follows his extraordinary admission last week that he had been positively exposed to the coronavirus. However, some consider themselves out too early than the common period.

Medical professionals say Trump's early exit from the hospital makes others more at risk of becoming infected by the virus as well. On the other hand, his spread among his most senior staff changed the public opinion that opposed him.

Support for Joe Biden Growing

Support for his Democratic rival, Joe Biden, has risen about four percentage points since mid-September. This data is according to a Reuters/Ipsos poll from October 2 to 6. Furthermore, about 52% of voters were predicted to choose Biden to be a President.

On the other hand, 40% are thought to be voting for Trump. Investors are starting to warm to the idea of Biden winning the election. It is a very positive thing for the dollar, said Yamamoto of Mizuho. So, what about other currencies?

The Australian dollar remained steady at $0.7106 in early Asian trade. Earlier, it had fallen more than 1% on Tuesday. Market participants said the Aussie faced more downward risks due to expectations that the Reserve Bank of Australia would lower interest rates.

Meanwhile, the New Zealand dollar was at $0.6587, near a one-week low. Other currencies on the market are also reportedly still volatile. Some future news, including the presidential election in America, will still affect this movement and market trade.