Erste Group Analyst: The Dollar Remains Vulnerable if Tariff Concerns Resurface
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Erste Group analysts Maurice Jiszda and Maximilian Moestl stated in a report that the dollar is expected to consolidate after its recent sharp depreciation, but it remains vulnerable if tariff concerns resurface. "After a three-month pause in reciprocal tariffs, if the trade war escalates further, the highly unpredictable U.S. trade policy could lead investors to lose confidence in U.S. assets." They said this would put new pressure on the dollar. Other factors affecting the dollar include weak U.S. economic growth data and Trump's criticism of the Federal Reserve Chairman.
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