Dollar slips after U.S. July retail sales drop 0.6%, euro hits highest since June 17
AI Market Summary
A sharp 0.6% m/m drop in July US retail sales, alongside softer CPI/PPI, reinforces signs of slowing US demand and reduces near-term Fed tightening expectations (lower September hike odds). The immediate market transmission is weaker USD: the dollar index slid while EUR and GBP reached multi-month highs. FX volatility may rise as investors reassess US growth and rate differentials, with labor-market concerns adding downside pressure to the dollar.
Impact level
● High
Affected assets
NCSIDXY2USD/USDT-0.16%
AI Insight · NCSIDXY2USD/USDTAI Insight
▼ Bearish
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U.S. retail sales fell 0.6% in July, sharply missing forecasts for a 0.1% rise after a 0.2% gain previously. Softer-than-expected CPI and PPI data this week pushed market pricing for a Federal Reserve rate hike to 31% for September and 69% for December. The dollar index slipped 0.25% to 99.67 as the euro rose 0.32% to 1.1564 and the pound gained 0.33% to 1.353.
