Dollar Sinks Amid Retail Sales Disappointment, Euro and Sterling Soar

The US dollar fell on Friday due to unexpected retail sales data for July. The figures showed a 0.6% decrease, contrary to economists' predictions of a 0.1% increase.

This downturn in the dollar coincided with the euro and sterling rising to their strongest levels in several months, as markets adjusted to potential shifts in Federal Reserve policy.

Juan Perez from Monex USA noted that this underscores an economic slowdown in the US, with softer inflation data reducing expectations of a Federal Reserve rate hike in September.