Erste Group analyst: If tariff concerns resurface, the dollar remains vulnerable

Erste Group analysts Maurice Jiszda and Maximilian Moestl said in a note that the dollar should consolidate after its recent sharp depreciation, but remains vulnerable if concerns about tariffs resurface. "After a three-month pause in reciprocal tariffs, highly unpredictable U.S. trade policies could lead to a loss of investor confidence in U.S. assets if the trade war escalates further," they said. That would put the dollar under renewed pressure, they said. Other factors weighing on the dollar include weak U.S. economic growth data and Trump's criticism of the Federal Reserve chairperson.