Markets continued to keep watch over U.S. President Donald Trump on several fronts even as a report that his top aides and congressional leaders had made significant progress on coming to an agreement over how to pay for tax cuts to both individuals and corporations was well received by U.S. stocks on Tuesday.

Additionally, Trump raised the specter of a government shutdown to fulfill a campaign pledge of building a wall at the U.S.-Mexican border.

At a rally with his supporters in Phoenix late Tuesday, Trump referred to his vow to build a wall at the border with Mexico and said, "If we have to close down the government, we are building that wall."

The comments over the suggestion of the looming government shutdown, put downward pressure on the dollar. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, slipped 0.06% at 93.36.

Furthermore, Trump also suggested that he might terminate the NAFTA trade treaty with Mexico and Canada after three-way talks failed to bridge deep differences. “I think we’ll probably end up terminating NAFTA at some point," Trump said at the political rally.

Wednesday’s data on manufacturing activity during August showed solid private sector growth on a global level.

Japan’s manufacturing purchasing managers’ index (PMI) showed a faster-than-expected expansion in August, while euro zone manufacturing businesses clocked their best month of growth in six-and-a-half years, led by a strong performance in Germany.

IHS Markit will release its preliminary PMI readings for the U.S. manufacturing and services sectors at 13:45 GMT. Investors will also digest U.S. data on new home sales in July at 14:00 GMT.

European Central Bank president Mario Draghi steered clear of any reference to the future path in euro zone monetary policy in a speech at the opening ceremony of 6th Lindau Meeting on Economic Sciences in Lindau, Germany on Wednesday, focusing instead on the need for vigorous research with regard to unconventional monetary policies.

Wednesday’s speech came ahead of the annual meeting of top central bankers and economists hosted by the Federal Reserve Bank of Kansas City in Jackson Hole, Wyoming, set to take place from Thursday to Saturday, with keynote speeches from Federal Reserve chair Janet Yellen and Draghi in the spotlight.

Though their comments will be closely watched for fresh policy signals from the world’s two most powerful central banks, expectations for hints on major policy shifts are low.

“If the Draghi speech in Lindau is any appetizer for Jackson Hole, there is no need for ECB watchers to cancel any Friday evening plans,” ING chief economist Carsten Brzeski commented on Wednesday.

Oil prices edged lower on Wednesday, amid speculation weekly supply data due later in the session will show a gain in U.S. gasoline inventories despite the peak summer driving season.

The U.S. Energy Information Administration will release its official weekly oil supplies report at 14:30 GMT, amid expectations for a draw of 3.4 million barrels at the end of last week. If confirmed, it would mark the eighth weekly decline in a row.

Meanwhile, gasoline supplies are seen decreasing by 643,000 barrels and distillates are forecast to fall 93,000 barrels. After markets closed Tuesday, the American Petroleum Institute said that U.S. oil inventories fell by 3.6 million barrels, just slightly more than expected.

However, API also noted that gasoline stockpiles showed a gain of 1.4 million barrels, causing concern over Wednesday’s incoming data.