The U.S. dollar rose sharply and then steadied on Wednesday as President Donald Trump backed away from threats of firing Federal Reserve Chair Jerome Powell in a relief to investors while optimism around trade deals lifted beaten down sentiment.

A flight from U.S. assets, including the dollar, could worsen if the president continues his attacks on the Federal Reserve, analysts warn.

Trump’s comments on the Fed chief late Tuesday in Washington walk back opinions expressed earlier in the week that sparked concerns about the US central bank’s independence. Progress in various trade talks also helped improve market sentiment after investors had broadly retreated from US assets this month following the announcement of century-high levies.