Watch out! Beware of Trump's Unsteady Stance

 Market sentiment cautiously adorned the Asian trading session, where the US dollar traded stable against most major currencies after investors were shocked by US President Donald Trump's stoppage of new stimulus package negotiations.


The market then returned positive after the president expressed his willingness to approve support assistance to US airlines and small businesses.


However, due to doubts and uncertainty about Trump's stance on the stimulus package, investors are seen to be taking a more cautious approach in positioning in the market.


The dollar index, which measures the strength of the greenback dollar against major currencies, traded stable at 93.62 during the Asian session.


Meanwhile, the Federal Reserve (Fed) continues to see uncertainty plaguing the very high economic outlook, where the direction of recovery is highly dependent on how coronavirus is curbed.



However, the Fed is of the view that the recovery in economic activity is recovering faster than expected from the fall in the second quarter.


The kiwi dollar fell lower after a Reserve Bank of New Zealand (RBNZ) policy maker said the central bank was 'actively trying' to implement negative rates.


Meanwhile, pound trading continued to come under pressure after rumors surfaced that Britain was planning to end Brexit trade talks if they did not reach an agreement on October 15, the deadline set by UK Prime Minister Boris Johnson.


British Cabinet Minister Michael Gove also stated that preparations for the Brexit no-deal were being intensified.