Dollar Slumps as Surprise Drop in US Retail Sales Stokes Economic Slowdown Fears

The US dollar fell on Friday after data showed that retail sales unexpectedly declined in July. The drop of 0.6% was worse than the revised 0.2% gain in June, and economists had forecast a 0.1% increase.

This news, combined with softer-than-expected consumer and producer price inflation data this week, has tempered expectations that the Federal Reserve will raise interest rates at its September meeting.

Juan Perez, director of trading at Monex USA in Washington, said 'We are clearly having signs of poor consumption. This evidence is clearly showing that there is an economic slowdown in the United States.'